Create a business plan and set achievable goals
Create a business plan and set achievable goals
Are you weighed down by the endless cycle of being busy and never having time to plan? Let us help you lighten the load.
Many tradies work hard but without a business plan or clear priorities. However, it’s a fact that having a business plan and setting goals will significantly increase your success.
A business plan is not just a simple to-do list. It’s a powerful tool that gives you clarity and direction, empowering you to stay focused and motivated.
Let’s explore why you need a well-defined business plan, how to create one, and how to set clear, achievable goals for your trade business.
What is a business plan?
A business plan is a vital tool for any business. It clearly outlines your business goals, strategies, and how you’ll navigate challenges when they arise.
It also helps you organise your ideas, prioritise actions, and focus on your long-term vision. A well-crafted business plan demonstrates your commitment and preparedness when seeking funding or proving compliance with legal requirements.
Don’t think you don’t need to create one because you’ve been running your business for a while. A business plan isn’t just for startups—it’s a critical resource throughout the life of your business.
Regularly updating your plan ensures it reflects new goals, trends, or circumstances, keeping your business on track for success.
Your business purpose: Summarise your business purpose. What value does the business provide to customers? How does it solve a problem or meet a need?
Your business structure: Define your structure (sole trader, partnership, or company), industry, and location.
Your target customers: Identify your target customers, research competitors, and assess opportunities. What are their demographics, needs and behaviours?
Your services: How does the business deliver its value to customers, such as offering a 24-hour callout or same-day enquiry response? How does the business interact with customers?
How you market your business: Include strategies for marketing, pricing, and retaining customers.
Your business operations and logistics: Detail logistics, technology, and staffing needs. What assets are critical to the business’s success? These include work premises, business systems (such as job management, accounting/bookkeeping), tradespeople, and administration.
Your business partnerships: Who are the external partners that help the business succeed? Examples: suppliers, subcontractors, business mentors, accounting/bookkeeping services
Your business revenue streams: Cover startup costs, revenue projections, and funding requirements. How does the company make money? Examples include new builds, maintenance work, and specialist trades such as plumbing and electrical.
Your business cost structure: What are the significant costs involved in operating the business? Such as fixed costs (office/workspace, wages, vehicles) and variable costs (materials).
Your business legal obligations: Ensure you meet licensing, tax, and insurance obligations.
Your business risks: Anticipate risks and create risk mitigation strategies. Conduct a SWOT analysis to identify strengths and opportunities alongside any challenges and plan strategies to overcome them.
How to set achievable goals
Once your business plan is in place, you can set objectives for the next 90 days, 12 months, and five years. Ensure your goals are SMART (Specific, Measurable, Achievable, Relevant, and Time-bound). This approach ensures your goals are well-defined and focused on measurable outcomes.
Short-Term Goals (90 Days): Concentrate on immediate priorities to secure quick wins. Such as increasing sales revenue by 10% through targeted marketing, negotiating better supplier pricing to improve margins, and training staff to enhance customer service and operational efficiency.
Medium-Term Goals (12 Months): Work toward sustainable growth and stronger market positioning. For example, aim to expand your customer base by 15% with a clear marketing plan, build stronger relationships with subcontractors, and enhance your digital presence by launching a professional website and growing your social media channels.
Long-Term Goals (5+ Years): Focus on significant milestones for business sustainability, such as striving to achieve a 40% profit increase through strategic pricing and operational efficiency, diversifying your services or product offerings, and automating operations using digital technology. Ensure short-term efforts align with medium-term objectives, prioritising high-impact goals like revenue growth and operational improvements to pave the way for long-term success. In the long term, you also want to work on making your business saleable and capable of running smoothly without your daily involvement. For example, this could mean planning for succession or creating systems that allow you to step away—like taking a three-month holiday—while the business continues to operate.
Need help with your business planning?
If you need help with your business planning or setting achievable goals, schedule a free, no-obligation chat with Monteba Business Solutions. We’ll help you work within your budget, save time, and put you on a healthier work-life balance. Our expertise can help you avoid common pitfalls, identify new opportunities, and streamline your business operations.
Start planning today, and watch your business grow tomorrow!
