As the final pages of 2015 closed and the first chapter of 2016 has opened, now’s a good time to reflect on the past year and look toward the next. Take a careful inventory of your 2015 accomplishments as well as opportunities for growth and improvement. Taking a hard look back will allow you some perspective as you plan for the year ahead.
First question: How did the year add up when measured against your 2015 plan? Didn’t really formalize a plan or write one out? That’s OK. No need to beat yourself up over it. There are a lot of people who overlook this step. Not surprisingly, they’re often the same people who wonder “Where did the year go, anyway?” Or perhaps you had a plan, but you’ve discovered that the reality of 2015 didn’t quite match your expectations. Whether you’re drafting your first business plan or are determined to make this next one better, here are some thoughts and suggestions.
What makes for a good annual business plan? I’ve found that successful plans all have a few characteristics in common: The goals are specific, realistic and measurable; performance against those measurements are taken at periodic intervals, and the plan’s author makes himself/herself accountable to another person to help see it through.
Be Specific. We’ve all seen how quickly the New Year’s landscape becomes littered with failed resolutions. Not for lack of desire, passion or intent, but for reasons more basic, more concrete. Specificity, for example. “Next year I’m going to get into shape” may be a noble wish, but it isn’t a clear goal. How will you know when you’ve achieved it?
For a professional practice, a more specific goal might look like this: “Next year I will increase my circle of referrals by meeting with three new potential referral sources each month.”
Be Realistic. It’s good to set a goal that stretches you, that sets the bar high. But while you’re conceiving it, can you see yourself achieving it? If so, great. If not, dial it back a bit. Remember: This plan is yours and success is defined by you and you alone.
In our previous example, we’re not holding ourselves to meet with twenty new referral sources. We’re keeping it realistic and fairly easy to attain while pushing us to do more than we are already doing.
Make It Measurable. Outline each goal in a way that lets you measure and track how you are doing. If your objective is to improve timeliness in your billing, for example, your goal could be to carry no receivables longer than 60 days. A professional advancement goal might be described as “Participate in one CLE course/event each quarter in a new area I’d like to learn about.”
Be Accountable. A plan on a piece of paper, as thoughtful and thorough as it might be, is not a plan. It’s just an idea. It becomes a plan when you start executing it. To increase your chance of success, share your plan with a mentor or a trusted colleague or friend. Ask for their assistance by checking your progress from time to time and holding you accountable for the plan’s completion.
Finally – and just for fun – allow me to demonstrate how I applied these principles to my 2015 New Year’s resolution. It was intentionally frivolous, but the concepts worked for me.
I like craft beer, but I found that I always got the same type of beer wherever I went. I might try different brands, but I didn’t have a sophisticated palate. I wanted to broaden my appreciation for other varieties so I set a 2015 goal of trying 52 new craft beers. That worked out to an average of one new beer that I had never had before each week for a year.
I shared my plan with a number of friends and as the year progressed, I logged my craft beer experience, one beer at a time. My goal was specific (52). It was realistic (just one per week). It was measurable and I tracked my progress by keeping a detailed log in Evernote. I shared my resolution with some friends and every once in a while someone would ask me how far along I was toward my goal.
The result? Reached my goal in mid-November and have really broadened my understanding and appreciation of craft beers. (One I highly recommend and a new personal favorite: Vertical Drop Robust Red Ale – Kannah Creek Brewing Co. – Grand Junction, CO.)
I’m now thinking through a more serious resolution for 2016, but I will apply this formula to improve my chances of success next year, too.
Best of the season to you and yours – and here’s to good planning for the New Year!
Looking for a mentor? Drafting a new business plan? WealthCounsel can help, with educational programs and resources to support your estate planning goals.
