I probably don't need to tell you how important it is to have a sound business plan...and marketing plan...and communications plan.  And since you're all successful business owners...I'm sure you can check these all off your list, right? 

But, have you ever considered how important it is to have a sound financial plan? 

This might just be the most overlooked strategic growth plan for your business.

I spent some time interviewing Shannah L. Compton, Partner, with SLC Insurance Services.  I thought you could benefit from her advice.

Heidi:
What is the #1 mistake you see business owners make with their financial plan?

Shannah:
It’s really difficult to boil this question down to only one answer. However, if I had to point out just one common mistake, I would say that your question exposes the answer- that is that most business owners forget the importance of a financial plan and operate for years with a lack of one.

Most business owners have a CPA and an Attorney, but tend to put the financial planner on the backburner until a crisis emerges. Simply put, a financial plan is as important to a company’s success as a business or marketing plan.

Digging a bit deeper, most business owners who do have a financial plan often overlook some of the most critical components of the plan which are:

a) Insuring their most valuable asset- their ability to earn an income. We insure our cars, our homes, our boats, etc., but most business owners often overlook their most important asset- their paycheck. A Paycheck Protection Plan should be the first building block to a solid financial plan.

b) A business succession plan for what happens to the business if something happens to you is equally as important. You’ve worked hard to build your business. I am sure the last thing you would want to happen should you retire, become disabled, or have an early demise is that your business would not carry on. There are many different ways to create a customized, cost-effective, succession plan to ensure that your hard work will continue to flourish for generations.

Messages focus on features, not benefits.  Take a peek at your advertising materials, website, elevator speech and other marketing tools.  Do they scream "me, me, me" or "you, you, you"?  Make sure you answer the "what's in it for me" question.

Lack of a consistent, clear brand image.  First question, do you know what your brand image is?  Do you know what your image represents?  Would a kindergartener be able to easily decipher what you do and why you're different?  Everyone HAS an image...some folks create their own, while others let their customers create it.  Which category do you fall into?

Lots of “wasted” time with social media/networking efforts.  Before you jump into Facebook, LinkedIn, and Twitter...you'll need a plan.  Set some goals and know what you want to achieve.  Otherwise, you'll fall into the bermuda triangle and have trouble coming up for air.

These days, one of the biggest complaints I hear from Small Business Owners is..."I'm struggling with cash flow".  

And, with the economy making a recovery (albeit slowly)...cash is king.  Businesses that dig deep and implement strategic marketing purchases NOW, will be better positioned for long-term success than their competitors. 

It's a simple fact:  More spending on marketing when others cut back means YOUR MESSAGE stands out. 

So--IT'S IMPERATIVE YOU FIND THE CASH YOU NEED TO INVEST IN MARKETING.

One way you can do this is to take a closer look at your account receivables. 

What is your total A/R?  How many of your customers are s-l-o-w-p-a-y-i-n-g?  Have you had to write some of these collections off?  Do you have a system for following up on unpaid invoices?  Does follow-up eat up your precious time...time you could spend on income-generating activities?

Expert Business Debt Collector, Wayne Eddington, advises:

"Many businesses face A/R problems--either how to deal with customers who pay their bills late, or not at all.  While customers expect prompt and professional service, they don’t always meet the same standard when it comes to paying their bills."

At the end of each day, when you look back, do you really know what you've accomplished?

Or have you been so busy, you can't remember.  Be honest.

Even more--at the end of each quarter, can you look back and account for everything you did that moved you and your business forward?  Do you know if you're on track to meet your yearly goals, too?

Success is based on your productivity--not on the amount of time you work!

Here are a few tips for Improving Your Productivity:

1.  Do something.  Don't just think about doing something.

Have you ever heard the phrase, "analysis paralysis"?  So many of us get caught up in thinking and analyzing and researching and making lists...that we lose precious time which could be better spent DOING something.  Don't be afraid to jump right in.  Action leads to success.  Inaction leads to nothing--literally.