The past couple of years have been anything but predictable when it comes to business planning, from drastic shifts in buying preferences and overwhelming demands, to shorter supplies and a more constricted supply chain.
The pandemic only exacerbated business challenges, which resulted in production disruptions and logistical bottlenecks, and next year may not be very different when it comes to conducting business in a stable environment.
Navigating such a tumultuous business environment using traditional methods may not be as simple as creating an annual business plan for the upcoming year. With such drastic changes happening at any given time, continuous business planning will be the best way to navigate this uncertain business climate.
Business Planning vs. Forecasting
There are generally two types of business planning: planning and forecasting. While planning is forecasting, forecasting is not necessarily planning. Here is the difference.
The goal of business planning is to outline a road map for the organization that can be executed, including:
- The organization’s goals and objectives
- An outline of each step and timeline to complete outlined goals
- Defined responsibilities detailing who is responsible for completing each objective
Business forecasting, on the other hand, is evaluating the progress and direction of the business plan, in the current conditions, to better shape your decisions. Forecasting helps pinpoint where an organization needs to focus the most.
5 Business Planning Tips to Best Prepare for 2024
Below are five business planning tips to best help you prepare and plan for 2024.
#1: Define Your Business Goals
It does not matter the size of your organization. You should take time to write down a few important business goals that you would like to achieve in the upcoming year. They do not have to be extravagant, but they should be specific, measurable, achievable, realistic, and timely (SMART).
The clearer the goals, the more likely you will stay on track to complete them. Defining your business goals creates the ultimate roadmap for your organizational success in 2024. You can rely on them to keep you anchored on what’s important, which will help you successfully achieve them.
#2: Create a Flexible Budget
The past two years have been challenging when it comes to sticking to a budget, let alone accurately creating one. Whether you have to circumvent rising inflation, increase in the costs of material and labor, or just plan around an unpredictable business climate, it does not mean you should skip the budgeting process. It just means you may have to be more flexible with how you allocate funds to best support your organization’s vision so that you aren’t limited to just surviving, but you can also grow.
When creating a flexible budget, consider what you are spending and investing in, and which resources most affect your customer’s experience with your organization. Take big-ticket items that will hit your organization the following year into account when creating your budget so you will be able to have and allocate resources as needed.
#3: Be Customer-Centric
You have likely heard the saying: the customer is always right. That is because, without customers, a company can’t survive, let alone thrive. Your business plan for 2024 needs to incorporate your customer’s needs and expectations from your organization, which could include creating a good customer service strategy or speaking with your customers to compile their satisfaction data and provide new products or services to better meet and exceed their needs. Remember that your customer is your biggest marketer and advertiser. So, how can you make them loyal to your organization?
#4: Get Your Employees to Buy-In
Have you ever considered how well your employees are engaged or bought-in to your organization’s product, services, and mission? Having their buy-in and engagement can often result in improved customer satisfaction and employee retention.
It’s always good to be in constant communication with your employees. Their feedback helps you review and modify job descriptions, update employee expectations, and develop employee goals that align with your business objectives and strategies.
#5: Prepare for Emergencies
If there is one thing that the pandemic has taught us is to be prepared for (economic, public health, structural, etc.) emergencies. Whether it is extraordinary weather patterns threatening your organization’s property and production, or a pandemic that limits employees from gathering in a physical location, creating emergency plans is an important part of business planning.
Create Your 2024 Business Plan
Businesses have been challenged to creatively plan their sustainability and growth in the unusual conditions of the market. While there may not be a secret formula, a good business plan is only as good as its execution and fiscal responsibility.
To best prepare your business for 2024, you should take some time to create an annual business plan and frequently forecast the direction of your business’s plan, goals, and progress.
At Apfelbaum Law, we versed in business law, which can help you navigate your business plan, forecast, and any legal matters that may arise in the future. Apfelbaum Law can be your legal team and advise you in either business transactions and contracts, as well as business litigation.
Contact us today to learn more about how we can help you with your business’s needs.
