Imagine you’re told to build a birdhouse from a template. The template should come with an image of what the final birdhouse should look like and the step by step instructions to build the birdhouse. Now imagine you didn’t receive what the picture of the birdhouse should look like, or the instructions in order to know how it was designed to be built. You can try to build the birdhouse with these resources but the final product may not reach the full potential that it could have.
Now imagine that the birdhouse is your business. Do you have a final image in mind of what you want your business to look like? This is your business strategic plan.
A business strategic plan is the predetermined goals you want to achieve in 5-7 years. It is the final picture you work towards using your step by step instructions, or your yearly business plans. For building a business plan each year, you must understand what you are working towards year after year; you must have your strategic plan in place.
Once you know what your business looks like in 5 to 7 years, such as financial, operational, equipment, and management goals, then you can build your business plan steps that work towards those final goals.
When preparing for 2021, there are a few items that need to be on your checklist. These steps will help prepare your business not only for this year but for achieving your business strategic plan.
Business Plan Steps Your Company Needs To Do
1. Develop Your 2021 Business Plan
Evaluate your opportunities and resources for the upcoming year. What does your business need to accomplish this year to strive towards your company’s final destination?
Think back to the beginning of 2020, did you create a business plan for the year? The unforeseen obstacles of 2020 were a major roadblock for many industries, including construction. It caused many contractors to change their course based on perceived opportunities and new destinations. Yet some of these changes did not align or support their strategic plan in 5 to 7 years.
With a solid business plan, you have a predetermined course for the year that will achieve your year’s goals and set you up for success the following year. This includes being able to identify opportunities that are actually distractions since they do not support your business strategic plan, saving your business a considerable amount of time, resources, and money.
2. Complete Your Annual Company Minutes
Each year, your business needs to hold an annual business meeting to discuss and plan for the year. These topics will help establish your business plan or roadmap for 2021.
Some of the topics that need to be addressed during the annual business meeting include:
- Financial planning
- Human resources planning
- Operational planning
- Marketing planning
No matter if the business meeting is just yourself as the owner and operator, or with a spouse, business partner, or team, it is essential to take the time to plan for the year.
Following your company’s annual business meeting, you will create your company minutes. While annual company minutes are required for corporations, it is still highly recommended that LLCs do them as well.
Company minutes provide authorization to the company to purchase things or borrow money outside ordinary operations. This means if you are planning to make a large purchase or buy something that is not considered an essential part of the day-to-day business, then it needs to be authorized before the company can make the purchase. Even if you are the only owner, a general contractor should still plan and record these upcoming purchases through their company minutes to follow the proper decision-making process.
Wondering how to record meeting minutes?
MNCLS provides an Annual Company Minutes Intake Form that makes creating your minutes easy. Simply input your company’s information, and the MNCLS team will create the documents for your records.
3. Create Your Estate Plan
Estate preparation includes 3 basic documents:
- Healthcare Directive (Living Will)
- Power of Attorney
These documents are essential for achieving your business strategic plans because they plan for the unexpected. Each document ensures that your business will follow your direction or be handled properly under unexpected circumstances.
For estate planning help, MCNLS offers an Estate Planning Intake Form. All you need to do is answer the questions and MNCLS will take care of the rest.
Build your best birdhouse by following the step by step instructions that will lead to the final and greatest birdhouse. By first developing your strategic plan and then implementing business plan steps that will get you there, including holding annual business meetings, creating company minutes, and creating your estate plan, your business will stay on track to achieve your long-term goals.
Get in touch with the team at Minnesota Construction Law Services (MNCLS) to learn more about strategic planning and creating your 2021 business plan.