1.05 – Establishing Your Plan’s Timeframe
Your business plan’s timeframe represents how far into the future you want to plan for your business. While the ultimate goal is long-term growth, each business plan covers a specific planning period. Some plans aim to reach a sales level, a funding objective, or another business goal. A good plan spans a realistic time frame with a clear start and finish, including measurable checkpoints along the way. These sections will help you determine the appropriate timeframe for your plan and the milestones to chart your progress.
Setting Your Schedule
The planning horizon for your business depends on your industry and its pace of change. Some ventures have only six months to prove themselves, while organizations with substantial endowments, such as nonprofits, may plan for five or ten years. Typical business plans use one-year, three-year, or five-year benchmarks.
Business planning is an ongoing process. Most companies review, revise, and sometimes completely overhaul their plans at least annually. As you establish your time frame, remain flexible. Think of your schedule as a commitment that can be revised if circumstances change.
Defining Milestones
Setting goals and measurable objectives is a critical part of business planning. However, knowing your goals and objectives isn’t enough. You need to establish a schedule with specific milestones to reach on your path to success.
Answer the following questions to help establish your business plan timeframe and key milestones, considering your business trends, cycles, and competitive and financial realities:
- Identify Key Milestones: What are three essential steps needed to get your business up and running or to reach your turnaround or growth goals? Estimate a timeframe for each.
- Business Trends: Is your business success tied to a major trend or change? If so, what is the timeframe for this trend?
- Seasonality: Is your business seasonal? When do you need your product or service available to take advantage of peak season?
- Competition: How soon do you need to make your product or service available to stay ahead of your competition?
- Profitability: When do you absolutely need to start making a profit?
By addressing these questions, you can establish a clear and realistic timeframe for your business plan, ensuring that you set achievable milestones and stay on track towards your business goals.
