Over on The Whoa Factor, I did a post on the importance of preparation when it comes to search engine marketing. It occured to me that the same principles apply to business undertakings of most any kind, and unfortunately, they tend to be overlooked in the SMB world.

The three steps of preparation are incredibly simple, really–

1. Strategy.
2. Tactics.
3. Resource allocation.

Child’s play, right? Wrong! Look over the following scenarios and ask yourself how many describe a situation you’ve been involved in.

1. A project commences with lots of people working on tasks that appear to conflict. Nobody seems to have any idea of where the project is heading.

2. The annual meeting. A sweeping and exciting goal is proclaimed. People leave the meeting pumped up and ready to crush the competition. By Monday everybody wonders how in the world this pie-in-the-sky goal can be reached.

3. An ambitious but achievable goal is articulated. Tactical assignments which harmonize like a classic symphony are given to various departments. But nothing gets done because people and budgets are overtaxed. The finely-tuned orchestra turns into an exhausted, one-man band.

4. Planning meetings are often scheduled but always wind up getting cancelled at the eleventh hour. Everyone is in permanent reaction mode, buried under the day-to-day. A strategic plan? Next year.

If any of this sounds remotely familiar, chances are good your company needs a more methodical approach to business planning. For small companies, this is easier said than done. Human resources are limited to begin with, and all-day planning sessions run counter to the entrepreneurial spirit that drives most such organizations.

However, without some degree of planning discipline, companies end up becoming victims of the exact traps they were trying to avoid. Those valuable human resources end up being squandered–due to too much wasted motion. Valuable time is chewed up in meetings as well–only the subject isn’t planning, but damage control.

2007 draws near. Is your plan in place, in process, or in visible?