Annual Planning

Read time - 7 minutes

Why Most Business Owners Don't Plan

Everyone knows planning is important. But most business owners I work with struggle to actually slow down and do it.

The problem isn't lack of desire - it's lack of clarity on how to plan effectively. Without a simple and actionable way to do it, they end up spinning their wheels and overcomplicating the process, and often end up without a clear plan going into the next year.

Annual planning doesn't need to be complicated. In fact, the simpler your process, the more likely you'll actually use it.

That's where the Vision/Traction Organizer (VTO) comes in—a two-page planning document that answers eight critical questions about your business.

The Two Sides of Planning

The VTO has two sides that work together:

Vision Side - Getting everyone 100% on the same page with where you're going

Traction Side - Breaking that vision down into executable plans

Think of it this way: Vision is where you're going. Traction is how you'll get there.

The Vision Side: Who You Are & Where You're Going

1. Core Values

The defining characteristics of your culture. These aren't aspirational—they're who you already are at your best.

Example: Do the right thing, Candor, Ownership

2. Core Focus

This defines:

• Why you exist (your purpose/cause/passion)

• What you can be best in the world at (your niche)

This is your sweet spot—the intersection of passion and capability.

Example: "Help families build wealth through comprehensive financial planning"

3. 10-Year Target

A simple, one-sentence long-term goal that everyone can understand and rally behind.

Not: "Be a leading provider of innovative solutions..."

Instead: "$50M revenue, 500 employees, operating in 10 states"

Keep it concrete. Make it inspirational.

4. Marketing Strategy

A summary of how you'll use your scarce sales and marketing resources. This includes four components:

Target Market - Who's your ideal customer?

3 Uniques - What differentiates you from competitors?

Proven Process - A visual description of how you deliver value

Guarantee - How you overcome objections and reduce risk for prospects

This isn't your full marketing plan—it's clarity on who you serve and why they should choose you.

5. 3-Year Picture

A simplified approach to strategic planning. Answer these questions:

• What's your revenue in three years?

• What's your profit?

• What are your key measurables?

• What does the company look like? (5-15 bullet points)

The goal: Paint a vivid picture so everyone can see where you're heading and want to be part of it.

Example bullets:

• 75 employees across 3 locations

• 90% customer retention rate

• New product line generating 30% of revenue

• All leadership team members running on EOS

Make it specific. Make it visual. Make it real.

The Traction Side: Making It Happen

6. 1-Year Plan

Same structure as your 3-Year Picture, but closer:

• Revenue target

• Profit target

• Key measurables

• 3-7 goals (not 23—if everything's important, nothing's important)

These are your must-accomplish projects, initiatives, or milestones for the year.

Critical: Keep it to 3-7 goals. More than that and you'll dilute your focus.

7. Rocks (90-Day Priorities)

Your top 3-7 priorities for the next quarter that move you toward your 1-Year Plan.

Why 90 days? It's short enough to maintain focus and long enough to accomplish something meaningful.

Everyone in the company should know these priorities along with your financial targets.

Example Rocks:

• Hire VP of Operations

• Launch customer referral program

• Implement new CRM system

8. Issues List

All your challenges, problems, obstacles, and opportunities that need attention—but not yet.

This isn't a to-do list. It's a holding tank so nothing gets forgotten.

The benefit: Getting issues out of your head and onto paper is therapeutic. It creates mental space and ensures nothing falls through the cracks.

How to Start Right Now

If you've never done annual planning before, here's your roadmap:

Step 1: Start With What Matters Most

Don't try to complete the entire VTO at once. Begin with:

1. 10-Year Target (where are we ultimately going?)

2. 3-Year Picture (what does success look like?)

3. 1-Year Plan (what must we accomplish this year?)

4. Quarterly Rocks (what are our next 90-day priorities?)

This gives you directional clarity immediately.

Step 2: Schedule the Time

Solo entrepreneur: 90 minutes Team of 2: Half day (4 hours) Leadership team of 5+: Full day or two

Whatever time you give yourself, you'll complete it in that time. Block it. Protect it. Make it sacred.

Step 3: Do It Together

If you have a leadership team, do this planning together. The alignment you create is more valuable than the plan itself.

When done right, everyone leaves 100% on the same page about where you're going and how you'll get there.

Step 4: Make It Better Every Quarter

Your first planning session won't be perfect. That's okay.

Review and refine your plan every 90 days. Each quarter it will get clearer, sharper, and more useful.

The goal isn't perfection—it's progress.

Step 5: Fill In the Rest Later

Once you have your 10-Year Target, 3-Year Picture, 1-Year Plan, and Rocks, go back and work on:

• Core Values

• Core Focus

• Marketing Strategy

This completes the vision of who you are, why you exist, and who you're serving.

But don't let perfectionism on these elements stop you from planning where you're going.

Why This Works

This planning process is simple by design.

Two pages. Eight questions. That's it.

No 50-page strategic plan that sits on a shelf. No complex frameworks that require a consultant to interpret.

Just clarity on:

• Who you are

• Where you're going

• How you'll get there

• What you're doing next

When everyone in your company can articulate these things, you stop spinning your wheels and start gaining traction.

The Bottom Line

Most business owners work incredibly hard but don't have a clear plan for where they're going.

They're busy, but they're not necessarily moving forward.

Annual planning changes that.

It forces you to work on your business instead of just in it. And when you do it consistently-reviewing and refining every quarter-you become a better business leader and build a better company.

Start simple. Start now.

Block time this week to answer four questions:

1. Where are we going in 10 years?

2. What does success look like in 3 years?

3. What must we accomplish in the next year?

4. What are our priorities for the next 90 days?

That's your annual plan. Everything else builds from there.