Why is planning important?
Many startups or entrepreneurs are consumed by the hard work of the day. The vast majority started their venture or project because they had knowledge or it was something they were passionate about, but not all have had the commercial knowledge to do it. That is why we are here to help you and give you a hand with some knowledge that we consider important for you to know.
Planning or projecting your business is useful to organize your company's resources, make sound decisions, and take concrete actions to grow your business. These are one of the reasons why planning is SO important and although the daily work does not give you the time you MUST do it to be able to grow your business efficiently. There are many ways to do it, it will depend more than anything on the area in which you work, the important thing is to be organized, see the history, the growth and be able to generate a growth strategy.
The history 🔦
The history of your company is essential when making projections. What products or services did you deliver the previous year, what profitability did they deliver, what prices they had, the quantity sold, the associated costs, are some of the points that we must analyze in order to start looking forward.
As we mentioned earlier, there are different ways to plan. Here is an example that shows a simple way to do it and it has been useful to us.
How to project? 💯
Open Excel and divide a spreadsheet into rows and columns. In the rows, you will put the services and products that you offer and those that you want to start offering, in the case of wanting to grow by diversifying your catalog. In the columns, you will put the years divided by months, as you can see in the image (referential, consider all the months of the year or a semester)
After analyzing your history, and seeing the growth you have in the different years, you should also consider external factors that have affected your growth and analyze if you should consider growth as such and it was an exceptional year.
Then you must analyze the market, for example, this year the sales of online products have grown considerably due to the pandemic. Take into account those products or services that generate profitability and enhance them. Only you will know how your business works and which items to give greater growth projection than others. Then start to complete. Apply market growth and adapt it to your company, also consider your market share for it. There are two ways of working, from macro to micro or from micro to macro. See what you think is more efficient for you, if you start with the detail of each product or start by analyzing the behavior of the market.
After having your projection ready, set goals to meet month by month, and optimize your resources to achieve the objectives that you will propose to achieve the year you project.
We wish you luck! Get organized, organized, and empower that growth!🚀