We often meet business owners who spend too much time focused on the operational aspects of their business without allocating time and space to consider the why, how and what they are in business to do.

With this in mind, it is a great time to look at the concept of personal business plans and discuss some of the fundamental steps towards personal and career development.

What is a personal business plan?

In many of our current conversations with clients, what is most striking is the lack of clarity around personal development plans and the need for a business strategy that allows for the successful delivery of these plans.

A personal business plan is a comprehensive strategy that is part personal development strategy and part traditional business plan. It outlines your individual ambitions and demonstrates how your business can help fulfill them.

It provides focus and ensures that any strategic business decisions are made in a way that delivers on your personal aims. It’s not about developing your professional skills. Rather, it’s about building the future you want.

For example, several clients who have created personal business plans with the aim of retirement have actually found they are already in a position to lay down their tools — and in some cases, probably could have retired several years beforehand.

So, where does the personal business planning process start?

A personal business plan must start with a mission statement that outlines your aims and ambitions. We would suggest the following as a starting point:

• Consider the legacy you want to leave behind, including what impact you want to have on your local community and what protection and support you want to leave your family
• Consider your retirement aspirations, both financially and holistically.
• Establish your current net worth by listing your assets and liabilities.
• Build a financial model to demonstrate your cash requirements. Then, you will start to understand the significant life events that will support any retirement plan, such as the realisation of a business sale, property downsizing, or the cashing in of a pension.

Once this plan is established, measures can be taken to maximise the personal income generated by examining how this is invested and ensuring tax mitigation strategies are in place. Many individuals simply do not appreciate how best to do this and where they may be missing out on opportunities.

Establishing the plan with your spouse or partner is also key. Future-proofing for inheritance and estate purposes will be required, so it is important that you are both on the same page. If you have a business partner, you’ll also need to involve them in the process.

Go from working in your business to working on it

So, we urge you to stop, create the space required to consider your personal aims and ambitions, and build a personal plan of action. Once this is in place, you will be much clearer about what the business needs to deliver for you. This will, in turn, help you start working more “on" your business rather than “in” it by lining up your personal aims alongside a sound business strategy.

This approach will naturally vary from individual to individual, as some may be driven by maximising business net worth and resale value whilst others wish to improve a work-life balance and at the same time guarantee a basic income entitlement remains to support their families and those working in the company. Unless you truly understand what it is you want from life, you will more than likely struggle with why you get out of bed in the morning, and the business will subsequently lack the critical direction it needs.

Personal business plans improve your everyday operations

Businesses and leaders with a clear plan provide clarity of vision and mission for their employees and leadership teams, thus ensuring that they are energised, engaged and empowered in everything they do. They understand their role and the difference they can make for themselves and for their colleagues.

How can Rickard Luckin help?

Understanding and facilitating planning is central to the business consultants advisory role we play with our clients. This sits at the core of how we train our people and the fundamental technical aspects you would expect from us.

Our team of experts are here to help you establish a personal business plan and general business strategy, so please do contact us today to discuss things further and get your personal and business goals firmly on track for the months and years ahead.