What Makes a Plan Successful?

Many people fail to realize the value of a project in saving time, money and many issues. Even small projects should be thought through; otherwise problems can quickly spin results out of your control. A good plan creates a platform for communication, establishes and manages expectations, and prioritizes and focuses resource utilization.

Specifically, a project plan should have these elements:

Goal – a project is successful when a goal has been attained. It is important that you identify the stakeholders in your project and find out their needs. Take the time to understand their true needs so that your project creates real benefits. Your goal statement should be SMART – Specific, Measurable, Achievable, Relevant, and Time-Framed.

Once you have defined the project goal, create a list of deliverables. Specify how and when each one should be completed. These can be translated into milestones in the schedule below.

Scope – this section of the project explains the boundaries of the project, establishes responsibilities for team members, and sets up procedures for communication, delegation, and approval. The better the scope is set at the beginning, the easier it is to adapt the plan to changes along the way.

Schedule – create a list of tasks to carry out for each deliverable and assign a due date. For each task, identify:

·         the amount of effort (hours or days) required

·         the resources assigned

·         any contingencies to be met

Budget – assign a cost for each deliverable. Be sure to include wages; equipment purchases, maintenance or rental; supplies; and contractor costs.

One of the common realizations at this point is that the project has an unrealistic delivery time or cost based on estimates. The Iron Triangle gives you the following options to ensure project success:

1.        Renegotiate the deadline (time)

2.        Employ additional resources (cost)

3.        Reduce the deliverables in quality or quantity (scope)

Now you should have a reasonably well thought-out plan. While you may have spent some time at your desk that you would have rather spent completing actionable items, this process will result in a plan that:

·         Clearly communicates the goal and scope of the project

·         Uses resources effectively and efficiently by detailing tasks with responsibilities, priorities and deadlines

·         Provides transparency to team members and stakeholders

·         Identifies risks and plans for contingencies so that setbacks can be dealt with quickly

Mastering Your Cash Cycle - the Next Step

Okay, you have mastered the basics of the cash cycle.  You are collecting like a bunny, paying like a turtle, and sticking to your plan.  You are ready to push the envelope and actually make your money work for you.  By following the steps below, you can actually make $1 in revenue equal to more than one dollar.  This works for your business, and your personal finances.

1.)  Deposit your money as you receive it directly into an interest-bearing account.  To start with, keep it simple and use a savings account.  The interest on those isn't the greatest, but the cash is available to use as you need it.  

2.)  Pay your bills with a credit card or line-of-credit.  A line-of-credit is preferred, but a credit card with a limit equal to one month's budget is okay.  In calculating your monthly budget, subtract the bills that you have to pay for by check.  The credit card or line-of-credit provides a limit on monthly spending, and you can easily check your progress by checking your balance.


3.)  Pay off the balance on your credit card or line-of-credit monthly, before interest accrues.  This piece is key, so I will repeat:  do not allow the lending account to carry a balance.  If you spend more than you make you are starting on a downward spiral that can be very hard to overcome.

Voila, your cash earned interest in your savings account during the 30-day cycle that you borrowed from your credit card or loan.  

www.mint.com/how-it-works

A very good tool to use is the free online finance software, Mint by Intuit.  With a few easy steps, you can enter all of your accounts, which Mint will update with transactions for you.  There's a budget that's very easy to use, and there's also an overview screen that shows your cash balance and budget activity at a glance.  They even have an app so you can update and check any time, anywhere.


The cash cyle is a business process that most of us don't consciously think about.  By making a plan for the flow of cash, we can take our company's cash position from a passive result of business to an active participant in profits.

Mastering Your Cash Cycle, the Basics

          Cash is an elusive small business tool.  One minute it's there, the next it's gone.  First you have none, then you have some, then someone else has yours.  The trick to keeping cash around is not what you think.  Okay, yes, putting it in savings and never, ever taking it out is a great idea, but not very practical.  Below are three (more practical) ways to keep cash working for you.

1.)  Collect like a bunny.  Collect your sales receivables at or before terms.  To do this, implement a collection process (habit) to train your customers to pay on time.  One or two months of reminders and your customers will pay on time.  A good collection process is to send a reminder (by email preferably) when the bill is 1 to 5 days past due.  A phone call at 10 to 15 days past due will motivate your customers to pay on time in the future.

Courtesy of flickr.com via Creative Commons

2.)  Pay like a turtle.  Pay your suppliers and vendors as far after terms as possible.  Unless you receive a discount for paying early or there's a penalty for paying late, never pay early or on time.  If possible, negotiate with your vendors to provide an early payment discount and terms that are longer than the ones you extend your customers.

3.)  Plan your spending, then stick to it.  Sit down and review your budget and plan your bill payments for a minimum of three months at a time.  Do this only once a month, if possible.   By looking at your cash position once a month, you are able to see the big picture, which helps you to make smart spending decisions.  Having a plan also reduces your stress, and limits the stressful process to monthly, rather than daily.

If you follow these three steps, your cash can work for you.  You can extend your cash cycle, giving your business the opportunity to invest the money.