The holiday season ends one year and begins another.  With it come feelings of hope and dreams for the future.  These are common themes this time of year, but why only this time of year?  Are people not hopeful all year round?  Yet they focus more on hope this time of year.  Perhaps it’s because they take the time to dream about new accomplishments in the coming year.

For business owners and managers this is the time of year when budgets are planned for the next fiscal cycle.  Much time is spent forecasting revenues and profit.  Some will also create new sales and marketing plans for the coming year.  Yet many seem to focus on the financial aspects of planning as a priority.  That seems backward.  Can a football coach decide the score before he makes his game plan?  Dan Gilbert, CEO of Quicken Loans said “The numbers don’t lead, they follow.” Forecasting is a necessary planning tool.  But results come from action plans that are tied to goals, not forecasts.

How are hopes and dreams connected to business planning?  They are part of the company strategic plan.  It begins with the owner’s vision.  What will the business become?  What will it achieve?  It is a statement about the future.  It is a dream.  Now what?  What must be done to move the business towards reaching its vision.  Usually, this means setting near term goals, that is,  for the next 12 to 24 months.  Some call that the Mission and the goals must be mission critical.

After the mission critical goals are set the action plans that will lead to goal achievement must be created.  Without the vision, mission, critical goals and action plans the results for the coming year are left to chance and the people are left to try to succeed without knowing what is expected of them.  That is a risky way to run a business.  Consider a strategic plan that contains these elements to realize your hopes and dreams.  Happy New Year!