It is important to plan, to be more proactive than reactive. An eye needs to be kept on the future; here we outline some key areas.

A business plan is simply a planning tool to help you document your vision and how you will achieve it. Be aware that a business plan is a living document, which means that you will need to keep it up-to-date as your business expands.

A business plan covers:

• The business objectives “ your vision
• An outline of the products and services you intend to supply
• Demand “ customers, competitors and your unique selling points
• Marketing plans “ pricing, promotion and related costs
• Finances “ estimated sales, overheads, cash flow
• Organisational issues “ premises, staff, equipment, IT support
• Success criteria “ both business and personal
• A synopsis of the key points of your entire plan (executive summary) for those who have limited time to read the full document.

If sole traders are to plan (which is recommended) then it is necessary to carry out an internal and external evaluation. One of the more popular methods is by carrying out a SWOT analysis.

SWOT ANALYSIS

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. The SWOT analysis should draw out any opportunities and threats that face the organisation, then together with the strengths and weaknesses, it is possible to see how opportunities can be met and threats can be avoided.

Strategies

The completed SWOT analysis should help give you an overview and a starting point as to where you want to go. Objectives are what we want to achieve and should be incorporated into a strategy, which outlines how you plan to do this. Objectives should be SMART:

• Specific: clear indication of what the goal is
• Measurable: able to evaluate progress
• Agreed: supported by all staff
• Realistic: achievable
• Time-constrained: deadlines set

CASH BUDGETING

Cash is the effective “lifeblood” of any business and poor control and insufficient access to it will result in business failure. Cash is critical in the short, medium and long term; weak control will lead to a lack of sustainability

If cash is not pulled in on time to (at least) meet cash liabilities then sustainability is normally maintained by additional borrowings and/or payment delays of liabilities, whether it can continue to be maintained is a separate issue.

It is critical that freelancers and sole traders prepare a cash flow forecast, this is vital for risk management and identifying potential problems. The construction of a cash budget requires us to look at the future and requires us to address three key questions

• WHEN do we receive and pay cash?
• WHAT do we receive and pay cash from/to?
• HOW MUCH do we receive and pay cash from/to?

These are the essential questions that we need to answer if we want to build a relevant and effective cash flow forecast.

TIME MANAGEMENT

Time is a resource that is finite, (unfortunately) it cannot be increased and we have to manage within a 24 hour day. However, it is important to manage time more efficiently and effectively, a number of systems exist to facilitate this management, below are some general points to bear in mind.

Daily Planning

Once you are familiar with using a system that suits you to organise and prioritise incoming tasks you can begin to build on that system and incorporate other planning techniques.

Use Your Time To Your Advantage – Be In Control

Plan your day bearing in mind when your energy levels are at their highest.
Don't break your chain of concentration with interruptions that you can prevent

• If you are becoming increasingly aware that your time seems to be slipping away and that there is a danger that tasks could start to edge nearer the CRITICAL ZONE check this out.
• Keep a time log to see where your time goes.
• Minimise too many interrupting phone calls

Handling Paperwork

• Get into the habit of managing your desktop as if it's one of the most important elements to winning back your time.
• If you have one project, one piece of paper or whatever you are working on in front of you and the rest of your desk is clear, you're bound to have more energy, focus and direction for that project.

Handling Interruptions & Distractions

• Keeping a handle on distractions will be the main issue to deal with, this might be in the form of casual callers and people who ask if you “have a minute”, which rarely means a minute.
• Ways in which to deal with this is to keep an appointment diary visible for enquirers to use / see.
• For other interruptions and distractions keep a note book with you at all times, not only will this banish all the scraps of paper but when at your desk you can instruct people to note down their query in a central place.

At Pro Active Resolutions we have scores of Sole Trader Clients, people like you who want to focus on what they are good at and leave the drudgery and technical accounts work to us. But we're there to act as a critical friend too, we see our success as being based on your success – so if there is a way we can help you on handle the business side of your venture better we're always happy to offer advice.

If you'd like more information on how we can help you with your business planning simply call today for a FREE consultation on 0116 2247122