How are Everyone’s 2013 Operating Plans Coming Together?

Well, it is November 30.  One more month until the year is over.  A couple questions for Business Owners:

·         How did you end up this year, compared to where you thought you were going end up? 

·         And, how is your business plan looking for 2013? 

I hope everyone is continuing to make serious progress in their business.  One more month - finish this year with a strong push. 

Hopefully, you have put together a solid 2013 business plan by now.  If not, it's time to get cracking.  The process I use is relatively straightforward and simple.  For each segment of business think about each of these pieces:

• Strategy
• Sales
• Operations
• Systems
• People

Strategy in the marketplace is the single most important thing to solidify and clearly communicate to your team.  As you develop your strategy, work with the sales team to develop a solid monthly sales forecast.  I like to really challenge sales to dare to deliver– and most of these people will put together aggressive programs.   

This sales plan is the basis for the business plan numbers.  Address your cost of sales, salary plans, and operating expenses assumptions.  Once you have your monthly income statement laid out.  Look at your balance sheet items and the income statement effects to inventory, accounts receivable, and accounts payable.  Evaluate the other sections of the balance sheet.  Remember – Cash is King.  Know your cash drivers.  Believe me, banker's appreciate that.  I have seen many business owners, running growing companies, wondering how they ran out of cash.  Again, know your cash.

I agree every business is different, however, each revenue segment should have a couple key indicators that are measured on a daily/weekly/monthly basis.  This may be a good time to reevaluate and think those through.

If you do have your business plan for 2013 complete, December is an excellent time to take a fresh look at it and make revisions as necessary.  Revise, revise, revise = improvement. 

It is imperative that these operating plan ideas and key measurements are understood by the key individuals in your company.  Everyone must know the businesses strategy and the scoreboard to add value and to succeed in 2013.

If you need any help, let me know - I love helping business owners improve their businesses.  

Think Profit,

/jon

Thanksgiving

I love Thanksgiving – It’s my favorite holiday. 

We certainly have a lot to be thankful for, and there are no gifts to deal with. 

Thanksgiving Day is a day to relax a bit and reflect a bit and spend some real quality time with your family.  It's a great time to think about what happened in your life since last Thanksgiving.  When you consider that, it’s not only amazing how quickly time goes, but also the many things that ‘happened’.  Things got done, new experiences occurred, different parts of the world were explored, special moments happened…a lot of things ‘happened’ since last Thanksgiving. 

These are what we should reflect on tomorrow; and be thankful for those experiences.  Hopefully, many of the things that happened were positive, but we learn from the negative things as well.  Also, be thankful for the day, the specific moment in time. Things move fast, but the simple moment in time, the present, is what we have at any point in time.   

The trick can be putting the present, the single days, together to accomplish big things and overall purpose – whatever those are for you. 

Me for Thanksgiving?  I’ll get my Thanksgiving Day trail run in with some of my friends.  I'll spend some time thinking about what things 'happened' since last Thanksgiving.  I'll spend the rest of the day with my family and being thankful.  The earlier workout will give me the green-light to eat a little more – perfect.   I love Thanksgiving dinner.

Enjoy the day tomorrow, and I hope we catch up soon.

/jon