Strategic Planning For Small Business Owners In 2021
How to plan for a successful year as a small business owner? Get crystal clear in your vision and bring it to fruition in 3 steps.
As business owners big and small have gained some perspective on what a loop 2020 threw the world in, it’s safe to say that flexibility and nimbleness are key in business now more than ever.
From delivery and pickup becoming the norm to working from home with no end in sight, this ability to quickly adapt has been key in surviving the pandemic for online businesses and brick & mortar stores alike.
Heading into 2021 (and beyond), quick thinking and even quicker feet are now a crucial business skill as you grow or maintain your business.
how to plan for a strong 2021 in your business
In order to make smart, informed business decisions, you need a solid understanding of what you want for your business and how to determine your path to get there. Strategic planning is key for small business owners because your resources are definitely not unlimited.
Clearly defining the parameters within your business early on allows you to adapt as you go and hit the milestones you set out to accomplish.
3 things you need to do for your business in 2021
define your okrs
OKRs, or Objectives and Key Results, have replaced KPIs, or Key Performance Indicators, for a simple reason: A single number or percentage can’t really capture the nuances and contexts of your business--much less diagnose its condition.
But what are OKRs? Objectives and Key Results are a comprehensive approach to goal setting: Your Objective is the end goal that you set. This can be a sales milestone, a decrease in churn rate, an increase in conversions from a lead magnet… You name it.
But be careful, your Objective still needs to be clear, concise and easily measured. A good example is: A 15% increase in revenue in Q1 of 2021 compared to Q1 of 2020.
Your Key Results are the smaller milestones that aid your Objective. In the example above, a Key Result would be the actions that help you get to that revenue goal. Your Key Result would be to increase conversions from 10% to 15% through Offer #1.
Identify your OKRs and your action plan will draw itself. You and your team will be working towards clear, measurable goals and everyone will know exactly what’s moving the needle forward in your business.
Interested in exploring OKRs in your business? Hubspot published a wonderful resource: How to Set Winning Sales Goals Using OKRs. If you’re looking at a bigger-picture, I recently shared: Overhead, ROI, and more. What are the key performance indicators you should track in your business?
2. make it a habit to evaluate (and pivot) often
In a growing business, there’s lots of moving parts constantly calling for your attention. As the leader, it’s up to you to constantly question whether everything is moving the way it should and when it inevitably isn’t, you’re responsible for quickly steering the ship back to where it needs to go.
In practice, this looks like setting the intention to monitor your business conditions regularly (at least quarterly) and ensuring that everyone (or you, if you work alone) is held accountable for their part, taking ownership of their responsibility and, most importantly, that their attention is truly focused on the activities that are getting you closer to where you want your business to be.
One resource you can use in your evaluations is the FACe chart, designed for you to see at a glance what everyone in your organization is doing, where the gaps and overlaps are, and how to address any shortcomings before they become an issue (or to revert the situation if they are already causing trouble).
3. track your cash
While money in itself is not a measurement of success, it is vital in driving your business forward. Money allows you to create jobs for your team and provide solutions to your clients while living life on your terms.
Both to attract more of it and to find where it’s going (and whether you’re using it in the smartest way possible), tracking your money and understanding your business’s cash flow is a key element of your strategic planning.
One of the most common tools business owners of all sizes use for tracking cash is the Cash Acceleration Strategies (CASh) by Verne Harnish. This worksheet is designed specifically to help you understand your Cash Conversion Cycle, or how fast your clients’ money hits your bank ;)
But that’s not all there is to it: Knowing where your money is coming from (and how long it takes) grants you the opportunity to prioritize one product over another, invest your resources in key growth areas (including new team members or software), and opens the doors to optimizing your clients’ experience, whether it means cutting steps in their journey; launching a new, financially-viable product; or simply realizing you can afford to bring the luxury up a notch with your offer.
Are you unsure on how to prioritize in your business? Read more: How To Focus On What Is Essential As A Visionary (Hint: Your OBM Can Help!)
a clear vision of your goals will make your business roadmap smooth
Without a clear vision of your business’s destination, how can you determine what the action should look like?
Once you get crystal clear on what you’re setting out to accomplish within your business, it’s easier for you to make strategic plans and stick to them because everything within your business has a purpose and a key stakeholder–even if it’s only you.
A clear roadmap is key in getting you out of bed every morning and doing the things that inch you closer to your big, scary dreams.
do you feel prepared to tackle 2021?
let’s chat
Kiva Slade is the CEO and Founder of The 516 Collaborative.
She is a Certified Online Business Manager® who partners with mid 6-7 figure business owners serving as their confidante, voice of reason and manager of all things operations, teams, and projects.
Kiva holds a Master's degree in Public Administration and has operated her own jewelry business. Her 20 years of experience run the gamut from Legislative Director for a member of Congress to chief encouragement officer for her teenage children.
In her free time, you can find her indulging in gluten free desserts, playing in the dirt in her garden, or with a good book.