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How to Write and Develop an Action Plan for Your Small Business
6 min. read
Updated October 29, 2023
Taking action at the appropriate time is critical to turning your visions into a viable reality. However, doing so without a proper strategy can be a recipe for disaster.
A well-designed and concrete action plan that weighs all the benefits and possible challenges is the key to executing your vision successfully. Furthermore, it makes tracking progress easier, which in turn helps you attain your goals.
Whether it’s a business, personal, or career goal you are going after, the right action plan can be your roadmap to success. A comprehensive plan details all the information regarding your objectives and projects, such as the resources required, the complexity level of tasks, etc.
Let’s figure out how you can build one to achieve your goals successfully and efficiently.
- What is an action plan and why is it important?
An action plan serves as a trajectory for the tasks or steps you need to accomplish to reach your goals and objectives. It is a crucial part of your strategic process that helps you improve teamwork planning significantly. Also, a proper action plan allows you to manage projects efficiently.
You have all the essential information in a centralized location that your team can access, making it easier for everybody to monitor progress and plan things successfully. As your company grows and circumstances change, you can revisit and make modifications to meet your latest requirements.
Planning of action items helps you prepare for any obstacles ahead. You’re your teams on track while ensuring impactful results. Furthermore, it also boosts your productivity and keeps everybody focused on urgent tasks.
Here are some of the reasons why an action plan is vital for you:
- It gives you a clear sense of direction by highlighting precisely the steps you need to take when you need to take that and what it will help you accomplish
- Having your objectives and goals on paper with structured steps keeps the team members motivated and dedicated throughout the project
- You can gauge your and member’s progress and contribution toward the collective goals
- You can turn your visions into reality, increase accountability and efficiency within your organization
How to create an effective action plan
When it comes to creating an action plan, various practical methods and tools can help you develop a robust action program. Begin by following this straightforward 7-step strategy.
Following these steps for structuring your action plan incidentally also acts as a brilliant roadmap for your idea’s overall presentation and can effectively create a clear goal.
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1. Define your scope
It is essential to define your scope, create a roadmap, and align it with your strategic planning . Make sure your actions guide you toward company goals. Start by gauging how your team members can contribute and help you achieve your objectives.
If you don’t have a clear understanding of what you want to achieve, it might be challenging for you to plan a new initiative. Defining your current status and where you see your company helps you analyze the situation, explore potential solutions and implement strategies successfully.
2. Set S.M.A.R.T. goals
S.M.A.R.T. (specific, measurable, achievable, realistic, and time-bound) objectives or goals is a method of objective setting that enables employees and managers to set, monitor, and achieve their long-term and short-term goals. This approach brings tractability and structure together.
Once you map out your plan, scope, and aim to accomplish, the next step requires you to set well-defined goals and measurable tools. Create a template to highlight all the tasks that your team needs to perform and deadlines.
It is vital to make sure that your entire team is on the same page, involved in the process, and has access to the document. This way, the projects become manageable while also boosting team productivity.
Furthermore, ensure that the tasks are attainable. If you have more complex tasks, it’s essential to break them down into manageable parts for easy execution.
3. Visualize your plan
Once you plan on the action items, prioritize tasks, and set milestones, the next step is creating a visual representation of your action plan. This visualization helps you engage your team and allow everyone to follow through to carry out activities.
A graphical presentation also makes it easier to get a bird’s eye view of your project. This way, you can identify your objectives and tasks that you weren’t able to execute or reach, allowing you to prioritize them to accomplish them.
You can elaborate your action plan with the help of a concept map that can help you explicitly communicate all the essential elements and information — task owners, tasks owners, resources, goals, objectives, deadlines, etc. Also, make sure the document is easily accessible to all.
Additionally, you can also leverage online visual collaboration platforms to help you seamlessly visualize and structure your simple and complex concepts.
4. Prioritize your tasks
It is imperative to align all your activities with specific goals and assign them to relevant team members. When you list and prioritize all your tasks, it helps keep track of your projects’ status, progress, and completion.
You could also structure your task list by importance. This way, everyone knows what needs to be done first to meet your deadlines effectively while ensuring that your employees can manage those tasks. That way, your team will also know their responsibilities and tasks to get done and engage them with a clear vision.
5. Set milestones
Milestones are the objectives that your team aims to achieve to keep a specific project progressing at a steady pace. Your work will have a lot smoother flow when everybody is clear with goals.
When you set milestones , it serves as mini-goals that help you achieve your central goal towards the end. Adding milestones to your action plan is crucial to give your team members something to look forward to and encourage them to stay motivated throughout.
6. Identify your resources
Before starting your project, it is imperative to ensure that you have the critical resources to complete the tasks successfully. And if you don’t have adequate resources, devise a strategy to leverage what you have effectively. Include all the essential components such as the number of projects, budget, timelines, etc., to make sure you don’t miss out on vital aspects.
Knowing what you have to work with will ensure that any tasks or projects you set out to accomplish have a better chance of succeeding. If you don’t have enough cash, a large enough team, or even enough time to manage every project, you’ll soon find yourself struggling to meet milestones and deadlines.
7. Monitor, gauge, and update
It is pivotal to allocate time and resources to evaluate your projects’ and teams’ progress. Make sure you conduct frequent follow-ups with team members to see if everybody is on track.
For this reason, you need to elaborate on the follow-up and assessment of teams in your action plan. This will help you implement the strategies that work well and eradicate the ineffective ones.
- A guide to reaching your goals
An action plan is an indispensable tool that helps you guide your way to realizing your goals. It turns your visualization into actionable steps and milestones.
From larger departments in an organization to individual employees, an action plan is a defined methodology that helps you outline your activities, tasks, resources, budget, objectives, etc. This, in turn, allows you to achieve desired outcomes.
JT Ripton is a business consultant and a freelance writer out of Tampa. JT has written for companies like T-Mobile and others.
Table of Contents
- How to create an effective action planÂ
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How to Write an Action Plan: Step-by-Step (Examples)
By Status.net Editorial Team on November 9, 2023 — 9 minutes to read
An action plan is a detailed roadmap of the necessary steps you need to take to achieve a specific goal or objective. It’s like a GPS that guides you from your starting point to your desired destination. Creating an action plan helps you break down a large goal into smaller, more manageable tasks, which makes the goal feel less overwhelming.
To start, you should first identify your end goal and be as specific as possible. For example, if you want to increase sales for your business, set a target like “Increase sales by 20% within the next six months.” This will give you a clear vision of what you want to achieve and make it easier to measure your progress.
Next, list the necessary actions or tasks required to reach your goal. These can be further divided into smaller tasks that are easy to understand and implement. For example, to increase sales, you could:
- Improve your online presence by revamping your website, optimizing it for search engines, and posting regularly on social media platforms.
- Reach out to potential clients through email campaigns and cold calls.
- Offer promotions or discounts to incentivize new customers to try your product or service.
Now, it’s time to set a timeline for each task. Deadlines will enable you to monitor your progress and stay on track. Assign realistic due dates for each task, and if needed, break them down into smaller milestones.
To ensure your action plan’s success, make sure to assign responsibility for each task. If you’re working with a team, delegate tasks according to each team member’s strengths, skills, and workload. This will help ensure everyone knows what their responsibilities are, and they are held accountable.
Lastly, always monitor your progress and evaluate your action plan’s effectiveness. Regularly review the tasks you’ve accomplished, and make note of the tasks that were challenging or required more time than anticipated. This self-assessment will help you improve your action plan and make necessary adjustments as you work towards your goal.
Example Action Plan
Goal : Increase sales by 20% within the next 6 months (By January 1st, 2025)
Actions : 1. Improve online presence a) Revamp website design – Due October 15th b) Optimize website for SEO – Due November 1st c) Post regularly on social media (1x/week min) – Ongoing
2. Reach out to potential clients a) Create email marketing campaign – Due September 15th b) Start cold calling campaign (10 calls/day) – Start October 1st
3. Offer promotions a) Design promotion flyers – Due September 1st b) Run month-long 20% off sale – October 1-31st
Monitoring : – Check website analytics weekly – Track new clients monthly – Evaluate sales figures monthly – Adjust plan as needed at monthly meetings
Responsibilities : – John to revamp website – Susan to handle social media – Michael to create promotions – Jennifer to manage outreach campaigns
Steps to Creating a Powerhouse Action Plan
First, identify your goal . Be specific about what you want to achieve and set a time frame for accomplishing it. This will help keep your efforts focused and prevent you from getting overwhelmed by smaller tasks. For example, instead of “increase sales”, choose “increase sales by 20% in the next six months”.
Next, break your goal down into smaller, manageable tasks . Create a list of activities or steps that must be completed in order to reach your goal. If your goal is to Increase sales by 20%, some tasks might be:
- Research your target market
- Develop a marketing strategy
- Improve product offerings
- Train your sales team
Assign a deadline and responsible party for each task on your list. This will help ensure that all tasks are completed on time and that everyone knows their role in achieving the goal. Make sure to set realistic timelines for each task, taking into consideration the resources and time available.
Here’s an example:
- Research your target market – due in one week – assigned to Jane (marketing specialist)
- Develop a marketing strategy – due in two weeks – assigned to marketing team
Monitor your progress regularly. Keep track of your progress by using tools such as calendars, project management software, or a simple spreadsheet. Regularly assess whether you’re on track to meet your goal and adjust your action plan if needed. For example, if a task is taking longer than expected, you may need to reassign resources or revise the deadline.
Celebrate your milestones and learn from setbacks . Along the way, take the time to acknowledge and celebrate your successes, as well as learn from any setbacks or challenges. This will help maintain motivation and encourage continuous improvement.
Finally, communicate your action plan to all stakeholders involved, such as employees, investors, or clients. Clear communication ensures everyone understands the goal, their responsibilities, and the expectations for the project.
Defining Clear and Smart Goals
Specific goals.
When creating your action plan, start by setting specific goals. These are clear, well-defined goals that leave no room for ambiguity. You should know exactly what needs to be accomplished and how you plan to achieve it. For example, instead of aiming for “increasing sales,” set a goal like “increase sales by 15% over the next six months.”
Measurable Goals
Your goals should be measurable so that you can track your progress and know when you’ve achieved them. This involves identifying quantifiable indicators that will help you determine your progress. For instance, if your goal is to increase sales, a measurable component can be the number of units sold or the amount of revenue generated within a specific timeframe.
Achievable Goals
When setting goals, make sure they are achievable and realistic based on your current resources and constraints. Consider your team’s capabilities, time, and budget. Unattainable goals may negatively impact your motivation and morale. For example, if you have a small team with limited resources, setting a goal to double your company’s size within a month might be unrealistic. Instead, aim for a modest yet challenging growth rate that can be achieved with your available resources.
Relevant Goals
Your action plan goals should also be relevant to your organization’s mission and vision. These are goals that align with your overall strategic plan and contribute to its long-term success. Relevant goals ensure that your efforts are focused on high-impact areas and avoid unnecessary distractions. For example, if your business is focused on sustainability, a relevant goal might be to reduce your company’s carbon footprint by 20% in the next year.
Time-bound Goals
Finally, ensure that your goals are time-bound, meaning they have a deadline for completion. Deadlines keep your team accountable and help maintain a sense of urgency, which is crucial for staying on track and achieving your objectives. A clear timeframe also allows you to measure your progress and adjust your plans as needed. For instance, you could set a goal to expand your customer base by 10% within the next quarter.
Assigning Roles and Responsibilities
When creating an action plan, it’s important to assign roles and responsibilities to your team members. This helps ensure tasks are completed efficiently and everyone is clear about their duties. Here’s how to do it effectively:
- First, identify the necessary tasks to achieve your goal. Be specific about what needs to be done and break it down into smaller steps if needed. For example, if your action plan involves promoting a new product, tasks could include designing promotional materials, creating social media posts, and reaching out to potential partners.
- Next, evaluate the skills and expertise of your team members. Consider their strengths, weaknesses, and past experiences with similar projects. This will help you match team members with tasks that best suit their abilities. For instance, someone with graphic design expertise should be responsible for creating promotional materials.
- Once you’ve determined which team members are best suited for each task, clearly communicate their roles and responsibilities. This can be done through a project management tool, an email, or a team meeting. Make sure everyone is aware of their duties and the deadlines for each task.
- Keep track of everyone’s progress, and hold regular check-ins to see how each team member is doing with their assigned tasks.
- Be open to adjusting your action plan and roles as necessary. Sometimes, unforeseen challenges can arise and require you to modify your plan.
Creating a Time Frame
When working on your action plan, it’s important to establish a realistic time frame for achieving your goals. This helps you stay on track and prioritize tasks effectively. We will walk you through the process of creating a time frame for your action plan.
- First, break down your primary goal into smaller, manageable tasks. Think of these tasks as stepping stones that will lead you toward your overall objective. For example, if your goal is to start a new business, your tasks might include researching your target market, establishing a budget, and developing a marketing strategy.
- Next, assign a deadline to each task. Deadlines should be specific and set in stone but make sure to be flexible enough to adjust as necessary. Use a calendar or planner to visualize your timeline, marking important dates and milestones. For example, you could set a four-month deadline for completing market research and a six-month deadline for securing initial funding.
- To keep yourself accountable, set reminders or notifications for important deadlines. This can be done using digital tools like smartphone apps or traditional methods, such as sticky notes on your workspace. Regularly reviewing your progress and adjusting your time frame when needed will help you stay on track.
- Lastly, consider any external factors that might impact your time frame. Are there seasonal events, holidays, or industry-specific deadlines that could affect your ability to complete tasks? Factor in these considerations as you build your timeline.
Resource Allocation
When creating an action plan, resource allocation plays a major role. You’ll need to determine the resources required for each task and how they’ll be distributed among team members. This usually includes time, budget, and human resources.
- Start by estimating the time each task will take. Break tasks down into smaller chunks and allocate a specific deadline to each. This will help you prioritize tasks and balance workloads for your team members. For example, if designing a marketing campaign takes four weeks, divide it into weekly tasks like conducting market research, creating promotional materials, and setting up advertisements.
- Next, determine the budget needed to complete your project. Identify any expenses such as salaries, equipment, software, and project-related costs like travel. Create a budget for each task to avoid overspending, and allocate funds accordingly. Using our marketing campaign example, allocate separate budgets for market research tools, graphic design tools, and advertising platforms.
- Lastly, allocate human resources to tasks based on their skills and expertise. Delegate responsibilities to your team members, ensuring that everyone has a clear understanding of their role in the project. If needed, identify additional hires or outside consultants to fill gaps in your team’s expertise. For instance, if your team lacks graphic design experience, consider hiring a graphic designer or outsourcing the work to a design agency.
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