!: The REAL Cost of Not Having a Business Plan

As the saying goes, "if you fail to plan, you plan to fail" and as business owners if you run your business without having a clear strategic business and marketing plan in place, then you're destined to fail... sounds harsh, I know, but if you don't know what the goal(s) are, how can you plan to get there?

And it is this lack of planning and being clear on your goals that causes so many small businesses to fail.

But today, I want to look at this from another angle, and share with you the very REAL cost of not having a business plan in place... and it's probably something that you don't even think about!

I talk to many business owners who tell me that they want to create a product, launch a new program, put together a teleclass series, or add a membership site to their existing offerings, but for many that's about as far as they go. They know they'd like to add this new income stream but, for whatever reason, don't go any further with their ideas.

And really it all comes down to not understanding how their inaction is affecting their business... in other words, the REAL cost of not having a plan in place, whether that's a full-on business plan or a simple plan for implementing that new income stream.

So, let's take a look at the following two goals to see what effect this inaction has on your bottom line. (And I should say these are two very real scenarios.)

Goal 1: To Create a First Level Info Product

Problems with implementing this goal:

Don't have a clear idea for what the product should include, or only have a vague idea (lack of research). Don't know in what format to offer it, e.g. eBook, ecourse, digital download, physical product (again, lack of research). Don't know how to set up the systems to automate the buying process via your website - so you can make sales year round. Don't know how to set up a product launch.

So, with all these issues, nothing gets done, but...

What is the REAL cost of not doing this?

Product Price = $97 (a good first level price point)

Sales Goal = to sell four items per week (very doable with the right promotions and follow-up sequencing)

Weekly Sales: 4 x $97 = $388

Annual Sales: $388 x 52 = $20,176

In this case, not having a clear plan of action for creating and launching your first level info product is actually costing you $20,176 in lost revenues!

Goal 2: To Create a 12-week Group Coaching Program

Problems with implementing this goal:

Not sure what the components of the program should be, e.g. teleclasses, video, workbooks, private forum etc. Don't know how to set up the systems so that people can register for the program and automatically receive their materials. Not sure how to set up a program launch.

What is the REAL cost of not doing this?

Program Price = $497

Spaces Available = 10 participants

Frequency = 2 times per year

Program Sales: 10 x $497 = $4,970

Annual Sales: $4,970 x 2 = $9,940

In this case, not having a clear plan of action for creating and launching your group coaching program is actually costing you $9,940 in lost revenues!

And if you do go ahead and create a plan to implement both projects, that would mean an increase in annual revenues of $30,116.

So, you can see when you don't have a plan in place it costs you more than lack of focus and overwhelm, it actually costs you thousands of dollars in lost revenues!

Your Action Steps For This Week:

1. What's your next income stream idea? Using the formula above, calculate how much it's costing you in lost revenues by not implementing.

2. Decide on a launch date for your income stream, and then work backwards in planning out all the steps. Create a clear week-by-week action plan.

3. If you need my personal support and guidance to implement your new income stream I'm here to help.