The Components of a Business Plan
Business Planning Resources.
Get in Touch

Business Plan Components

Have you ever wonder what are the key components of a business plan? As a business coach, one of my essential roles is to assist my clients in determining what the key components of their business plan should be.

 

My experience is that many companies do a poor job of creating their business plans, costing them serious growth in revenue and profits. If you are like most leaders I’ve worked with, your annual business planning process may be broken. Often I find that leaders spend too much time focusing their attention on goals rather than on the components of their plan that will cause them to achieve those goals.

 

Two indications that you have a problem with your current business plan:

 

1. You do not find the need to visit your business plan weekly, monthly and quarterly with your executive team to make sure you are following your plan.

 

2. You are not consistently hitting your revenue and profit numbers on a monthly basis.

 

The Importance of a Business Plan


The main reason to create a business plan is to find the simplest path for your company to produce maximum results. A good plan creates focus, sets priorities, causes alignment throughout your organization, and provides a means for accountability. As a facilitator of hundreds of monthly, quarterly, and annual planning sessions, I have found that most organizations fall well short of achieving these objectives.

 

Lack of prioritization is, by far, the most common issue I see causing companies not to reach consistent performance. While most leaders like to blame external conditions, it is usually an internal shortcoming. The leadership team fails to say “no” often enough, chooses to chase fires rather than identify and address their real issues, and thus makes their organization work twice as hard to produce less.

 

The 9 Components of a Business Plan

In order to accomplish focus, prioritization, alignment, and accountability, your business plan must have the following components:

 

1. Core Values and Purpose

Tell everyone how they must operate (core values) and why you exist (purpose)

 

2. Sales Strategy

Clarify how you will make money

 

3. Competitor Differentiation

Distinguish how you will be different from your competition.

 

4. Goals and Objectives

Be specific and measurable in terms of goals so everyone knows what success looks like on a monthly basis for the company.

 

5. Annual Priorities

Identify the 3 to 5 absolutely essential annual priorities – these are the very difficult changes that need to be made in terms of products and services, systems and process, and people so that you can accomplish the above.

 

6. Company Priorities

Identify the 3 to 5 quarterly that will drive the annual priorities.

 

7. Leadership Priorities

Identify the 3 to 5 quarterly personal priorities for every leader that aligns with the company priorities and functional priorities.

 

8. Action Plan

Create very specific action plans to make the priorities happen.

 

9. Accountability

Establish a measurement system so that everyone can be held accountable.

 

Improve Your Business Planning Process

 

With the business coaching services offered at Activate Group, we can maximize your team’s success and simplify your organizational processes. Contact us for a free consultation to learn how we can help your organization.

 

Our Business Coaches

Meet Your Executive & Business Coach Leadership Team

Activate Group’s team of business coaches and executive leadership consultants will help you see your business and the world differently. They will equip you with the tools and methodologies to discover opportunities you may have never imagined and achieve results that bridge the gap between what is …  and what can be.

Howard M. Shore

Howard M. Shore

Activate Group Founder, Master Business Accelerator, Speaker & Best-Selling Author, Business and Executive Coach
Connect on LinkedIn

Larry Rutkowski

Larry Rutkowski

Kellogg School of Management, Business and Executive Coach, Speaker, Scaling Up, Management & Leadership
Connect on LinkedIn

Mo Rousso

Mo Rousso

Business and Executive Coach, Speaker, Published Author, Business Acceleration, Process Optimization, Tech & Innovation
Connect on LinkedIn

Albert Noa

Albert Noa

Leadership and Management Coach, Human Capital Management, Change Management, Operationalizing Strategy, Performance & Process Management
Connect on LinkedIn

Send Us A Message

ACTIVATE YOUR BUSINESS TODAY!

quiz icon

Is your company leaking profits? Take this five minute quiz and find out.

Discover six reasons you need an Executive Coach to help you grow your business with less personal time investment and less stress.

Get a demo of the system and software that keep your team focused and aligned, increasing productivity and supporting revenue growth.

Activate Group Inc - 2