6 Ways to Tackle Your Business Plan
For many lawyers and business advisors in Australia and New Zealand, this is the time of year when FY24 results are pretty much known, assumptions for FY25’s budget conditions are scrutinised, and business development plans are revisited.
The good news is that writing your business plan doesn’t have to be a long and laborious effort. Better still, by putting in a little bit of effort now, you can save yourself tonnes of work in the long run. Here’s how.
1. Start with what you’ll ditch
I’ve seen a lot of professionals go to town on their business plans, adding a whole lot of new activities. But if you’re really pressed for time - which I’m almost certain you are - why on earth would you start by giving yourself even more to do?
My advice is to instead begin your business plan by working out what you can ditch. That means letting go of those activities where “the juice just ain’t worth the squeeze”. You can read more about how to do that quickly and efficiently right here.
Time is the one thing you can’t make more of so you need to figure out how you’re going to use it and prioritise what actually works for you.
Writer and productivity expert Oliver Burkeman (2021) suggests that if you really want to ditch something but can’t, make the conscious choice of going for ‘strategic underachievement’. That is, decide ‘in advance what you’re going to fail at’ or take a leaf from the economic rationalists and practise ‘satisficing’ - that is, selecting a course of action that isn’t optimal but will be acceptable under the circumstances.
Maybe you won’t be the star of the innovation committee or the ESG steering group or the Graduate Engagement program – but does it matter? It’s alright not to be the standout performer in everything.
2. Know what you’ve done and where you are now
Another thing I notice is that most busy professionals literally run from job to job. There’s never any reflection because there’s simply no time for it.
Starting a business plan is all about reflection. So, before putting pen to paper have a stop and think about what you’ve achieved in the past year or two. Put aside sixty minutes to consider:
The significant clients you’ve worked with and how you’d rate them
The projects you delivered and whether you loved or loathed them, or felt some kind of emotion in between
The fees you recorded and the work you left on the table
The referral sources you’ve delighted
The pursuits you won, and
The random opportunities that became career highlights.
I also think this is the time to wheel out your trusty old SWOT analysis - strengths, weaknesses, opportunities and threats - so that you know exactly where you stand right now.
3. Plan on three levels
There are usually three levels of business planning in a professional services firm: the business plans of individuals often nest in the business plans of practice teams or service lines or regional groups, which, in turn, nest in the business plans of the whole organisation.
It goes without saying that it’s more efficient for everyone if plans complement rather than compete with each other. You should be working together like an orchestra of experts rather than a talent show of try-hards.
Before you begin your own plan ask to see business plans which affect your practice, so you understand the parameters you’re working in.
4. Plan in three stages
Once you know where you stand now, it’s time to think of what’s next. Here, an effective business plan shouldn’t just be about helping you kick goals this year. It should also be about seeding potential opportunities for the future.
I like using McKinsey’s Three Horizon Model, or Nagji and Tuff’s (2012) Ambition Matrix – or at least an adaptation of them. This calls for businesses to plan for three stages of development: Horizon 1 (delivering and extending your core business), Horizon 2 (developing new opportunities) and Horizon 3 (creating viable options for the future).
To apply this to your own practice, think about how your ideas help for the next 12 months or the next 12 years – or a range in between. As a very general rule of thumb, about 80% of your time should be focused on Horizon 1 activities, 15% on Horizon 2 and 5% on Horizon 3.
5. Pick your lasting pathway to profit
Ask yourself whether the projects you’re working on today have any life down the track. For instance, I remember when Australia introduced a Good and Services Tax in 2000 and there were some heaving consulting engagements by the accountants. Now apps and systems do the work and there’s little-to-no money in the space at all.
At the same time, what is today a profitable service could become a commoditized price-sensitive offering, so you need to think about how future proof your work is too.
This is where Horizon Planning becomes really effective.
Look for where you’re vulnerable and, if you spot something that looks more ‘here and now’ than tomorrow, work on a plan to divert the energy you’re spending on it into an adjacent, more future proof area.
You should also make sure you understand the profit of every engagement - so that you can compare the revenue and margins in your practice from existing sources with those that future sources are likely to bring.
6. Practice patience
Because our environment is complex and dynamic, business planning should always be a continuous exercise.
There will always be a ‘to do’ list that isn’t done, problems that can’t be solved and times when traditional approaches must give way to trials and testing.
When it comes to executing your plan there will also be lots of variables and things beyond your control that determine what you can do and the speed at which you can do it.
That said, there are things you do know - for example, the type of practice and market you want to focus on, your workplace’s expectations and infrastructure, your firm’s remuneration and reward structure, your own expectations and personal motivations, and what you enjoy doing.
That’s why I like all implementation plans to start with these but then have a: ‘This depends on …’ column in between the ‘who’ and ‘when’. This covers that huge chasm between making someone accountable and getting it done.
I also like to see professionals check in with their plans each month or two to remember what they’ve written, make sure they’re on track and make adjustments if they need. In business planning, ‘having good think’ is a perfectly acceptable - even necessary - action point.
And finally…
It’s the process of reflective, analytical thinking and the ‘a-ha’ revelations for your practice that give business plans their value – not how many times the document is revisited. It’s also giving into the reality that not everything will turn out as you planned.
As Burkeman noted in his final column for The Guardian (5 Sept 2020):
“The future will never provide the reassurance you seek from it.” So when it comes to making business plans “do that with the awareness that a plan is only ever a present-moment statement of intent, not a lasso thrown around the future to bring it under control.”
Want more?
If you’d like help with building your business plan, or would like a business plan template to get started, then email Sue-Ella or get in touch.
Sue-Ella is the Principal of Prodonovich Advisory, a business dedicated to helping professional services practices sharpen their business development practices.
She works with firms that focus on positive client relationships, and with individuals who want personal, intelligent support.
You can contact Sue-Ella here or book a private 45-minute BD Session here.
© Prodonovich Advisory. This article was written by a human. Please respect our copyright and the effort taken to produce the original material in this document. This document or any portion thereof may not be reproduced or used in any manner whatsoever without the express written permission of the author.
References, tools and further reading
Burkeman 0. (2020) The Eight Secrets to a Fairly Fulfilled Life, The Guardian and (2021) 4,000 Weeks: Time and How To Use It, Penguin, Audio and book
Kim W C & Mauborgne R (2014) Blue Ocean Strategy: How to Create Uncontested Market Space and Make The Competition Irrelevant, Harvard Business Review Press; Revised ed. edition (20 January 2015) - in particular the Four Actions framework.
Lafley AG & Martin R (2013) Playing To Win, Harvard Business Review Press. A good summary by Farnam Street (2022)
Nanda A & Narayandas D (2021) What Professional Services Firms Must Do To Thrive, Harvard Business Review, March-April issue.
Patnaik, D (2021) Creating a Post-COVID Business Plan, Harvard Business Review
Pirsig R (1974) Zen and the Art of Motorcycle Maintenance, Harper Torch, Audio and book.
Prodonovich S (2021) 5 Tactics To Help Your Firm Thrive
Prodonovich S (2018) How to Market a Niche
Ramirez R, Selsky J W, and van der Heijden K (2010) Business Planning for Turbulent Times: New Methods for Applying Scenarios Earthscan 2nd Edition
Tools
Ansoff I (1957) Strategies for Diversification
Boston Consulting Group: The Growth Share Matrix
PESTLE (Political, Economic, Social-Cultural, Technical, Legal) Analysis for the bigger picture- https://pestleanalysis.com/what-is-pestle-analysis/ and worksheet file:///H:/Downloads/PESTAnalysisWorksheet.pdf
SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis for your practice https://www.mindtools.com/pages/article/newTMC_05.htm