In 2011, a small and medium-sized business survey was conducted by E-Myth and Synotac that revealed fascinating statistics concerning how growth and development of a business are related to Planning. The survey was entitled “State of the Business Owner” and was conducted with 800 business owners from around the world with the heaviest concentration on U.S. businesses. The results of this investigation led to what E-Myth dubbed the “Success Recipe” for businesses.
The Success Recipe is relatively simple to understand. E-Myth defined it as “Visions + Plans + Data = Success.” To summarize the equation in words, business found success by combining three elements to create success: they established a vision to work towards, developed a plan to make that vision a reality, and then used data to measure the outcomes and accountabilities.
The Success Recipe created by E-Myth and Synotac is easy enough to understand when explained, but what is most interesting are the results that back up the recipe’s theory. Let’s take a look at some of them:
- While only 42% of surveyed businesses had a written description of their desired future goals, all of those businesses grew 50% faster in the year the survey took place. This led to increased optimism within the organization as a whole. Also, the owners of these businesses took home an extra 25% in compensation. Not too shabby!
- Businesses with written plans that were attached to individuals that were held accountable for them grew 60% faster than those with absolutely no revenue plans.
- The businesses that routinely measured and reviewed the progress made towards their goals consistently outperformed competitors with no plan.
- Business owners who utilized balance sheets and income statements to base their decisions earned 60% more and grew 45% larger.
- Business owners who took the time to track their business metrics at least once per month earned 60% more and grew by 80%.
This list of results proves that Strategic Planning is not only essential, but a facilitator to the overall success of a business. At Vesta, we stress the relevance of Strategic Planning to clients, but without numbers to prove the true effectiveness of a Strategic Plan many business owners simply turn a blind eye or wind up focusing on other day-to-day requirements. Luckily, E-Myth and Synotac’s study proves the importance of Strategic Planning.
Now that you know the benefits of Strategic Planning by the numbers, contact a Vesta consultant at one of our several Wisconsin locations so get started on a customized Strategic Plan that will carry your business into a successful future!