It would be unfair to say that there is one type of business planning that is perfect for every business type, but lean planning certainly comes close. Many businesses often feel like the only option when it comes to creating a plan is to either go the traditional route, or to create a static plan that is set in stone. However, with lean planning, a unique approach is being introduced into the industry that works really well for all types of businesses. It’s all about planning less to maximize growth with a business strategy that can be adjusted as needed. To learn how to implement this business plan to further your company’s success, go to Learning.ly and enroll in the Lean Planning course.
What is lean planning?
Lean planning offers a simpler approach to business plans that can also be revisited and revised on a regular basis as new information is discovered. It was created to offer a better alternative to the often lengthy and troublesome business plan methods that are static once created. Lean planning incorporates several different tools that allow you to create a business strategy, build an action plan, create financial models and track your performance so adjustments can be made as needed. This ensures that your business plan consistently works alongside your business’ growth.
The power of forecasting
Forecasting is a key component to lean planning. It’s the process of establishing the crucial metrics that are driving the process of the business plan. It’s important to carefully consider a variety of things within this initial stage of lean planning, such as the cost of goods sold, marketing costs, gross margin and many other variables that influence your company’s success. Once you have identified each variable, you can then predict and set targets for both your financial and business metrics. This is incredibly beneficial to your business, as it allows you to understand the key factors that are ultimately growing your success. More importantly, it allows you to thoroughly understand your business’ financial standing. Several small businesses fail as a result of no cash, and this part of lean planning can deter that.
Gauge and analyze with monthly reviews.
It is important to commit to monthly reviews when following a lean planning strategy. This allows you to gauge and analyze all elements of your business. More importantly, you can evaluate any discrepancies between your predicted or planned outcomes, and the actual results. This proves to be exceptionally beneficial, as this provides the perfect opportunity to see why your current plans and predictions were off. It could be a result of incorrect forecasting, or external factors. It's important to keep in mind that it could take several monthly reviews in order to see the trends that will ultimately allow you to create an optimal business strategy.
Ability to make small, yet accurate adjustments
With lean planning, you can make proper adjustments to your business strategy that will address any discrepancies discovered within your monthly reviews. These don’t have to be major changes either. Small adjustments allow you to quickly action any required changes to your services, product or business model as a whole.
There is much more to lean planning, but with these benefits mentioned, you will be able to measure the power that this approach has for your business. With this structure of a business plan, you can ensure financial stability, while also discovering crucial information that impacts your business’ success. With the ability to adjust your business practices, services and goods to fit actual results, you can adapt your business to fit actual results. This flexible business strategy gives you an edge that is required to grow in today’s competitive market place. Learn how you can get started with lean planning today on Learning.ly. We offer affordable an easy-to-follow courses that can change the way you operate your business, all for the better.