Planning for the next year always seems like a daunting task. Ideas trample over each other as budgetary and logistical concerns jockey for brain space. Whether you are new to this or a seasoned pro, the following can serve as a simple guide to 2021 business planning.
Now is the time to be more disciplined. This step-by-step process can help you in creating a strategic business plan:
Before you begin, do a little prep work. Put together a wish list of what you think you would like to accomplish in the next year, analyze your current state of strengths and weaknesses, and review your financials. Take time to write this all down - just getting your initial thoughts on paper can help clarify and guide the planning process.
Also review your current marketing scope. What have you been doing that has worked? Where can you improve? Spending a little time analyzing your past and current marketing efforts will help you formulate a strategy for the year ahead.
The key to effective 2021 business planning is taking an integrative approach: traditional and digital marketing techniques need to coexist and work together seamlessly. Putting viable strategies in place is mission critical.
The next step in creating a strategic business plan is to identify and clarify your goals. Where are you, and where do you want to be by the end of 2021 (and beyond)? Set SMART (specific, measurable, achievable, realistic, and timely) goals based on your analysis of current business trends and market opportunities.
Next, determine what resources you will need. Do you have them in-house? Do you need to outsource critical responsibilities such as SEO, content creation, etc.?
Who are you as a brand, who do you want to reach, and how will you do it? Examine the following:
This one is very near and dear to our hearts at THAT Agency. As a whole, we define one of our USPs on our vigilance with website analytics and reporting and our transparency in doing so. It is imperative that you measure everything, so that you can review and analyze the results, and make tactical changes as needed throughout the year. The benchmarks and KPIs will help you work towards your goals and measure progress.
Not to be confused with your overall budget, your marketing budget should focus on identifying the allocation of funds to various platforms so you can effectively market to, and capture the attention of, your ideal customer. Determine optimal funding levels needed for each platform in order to reach your goals.
While this is likely the most important part of the marketing plan, don’t let it become a daunting task. Start high-level, outlining each of the marketing tasks you will implement each month. From there, you can flesh out further, which will ultimately help you to determine how much money you will need on a monthly basis to market to your customers.
Including an operational improvement plan in your yearly business planning is a key requirement for any business that wants to excel in the ever-changing world of business. This part of your business plan may benefit from the assistance of your team. Schedule a few brainstorming sessions, and pick their brains to get feedback from their vantage points.
Topics to discuss and address as part of your operational improvement plan may include:
Once you have met with the team and brainstormed within each of these areas, set some goals for yourselves. You may find it useful to have a champion for each goal - a teammate whose purpose is to ensure each goal is met.
Within each of the topics above, it also may be helpful to define any “quick wins." Quick wins are fairly easy operational changes that can be implemented with little-to-no effort or budget. Defining these opportunities will provide an immediate sense of accomplishment, which will serve in bolstering your confidence as you continue with your 2021 business planning efforts.
Last, but certainly not least, your financial plan. Analyze your income. Where did it come from? When did it come in - if your business is seasonal, this could be a biggie? What effect did your previous marketing plan have on it?
Now, take a look at the market and economy. Are there any anticipated changes that could affect your income in the future? Once you have analyzed the above, start laying out your income projections month-by-month. Don’t stress too much on this one, it is just your best guess, based on the data you have reviewed and analyzed.
Analyze your expenditures for the past year. Was it money spent well spent? Do you need to allocate more money to certain areas next year and less to others? Based on your marketing plan and history, create a budget month-by-month for the upcoming year.
You should now have a clear picture by month of your cash flow throughout the year. You can utilize this to measure each month’s performance, and compare as the year progresses.
This is, of course, a simplified guide. If you need help with 2021 business planning or putting your strategy into action, contact THAT Agency.
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Editor's Note: This post was originally published in November 2019 and has been updated for freshness, accuracy, and comprehensiveness.