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
