By Djay Rijneveld at May 05 2019 09:39:14
Strategic Review of Plans/Goals at Year_End: At the end of the year, a thorough review of the plan and its process should be discussed with the team in order to make the next planning cycle more effective and efficient. Take a look at all of the successful initiatives and the ones that fell short in order to identify where the "broken pipes" occurred in the process. Remember not to double_dip on the capital projects EBIDTA contribution for the upcoming year _ your budgetary baselines should move in concert with these investments. All projects that straddle the budgetary year, should be rolled over into the new plan. Business planning is the road map that identifies where you are headed in advance. As importantly, it also identifies road blocks _ in advance. Your business plan should provide a common vision supported by tactical initiatives that, ultimately, creates greater value for your company. It may seem daunting, but by knowing your vision and its corresponding financial targets, you will have a better chance at executing how to get there and avoiding traps in advance.
Once you chose which one or more of the 7 you want to use and calculate exactly how much impact they have on meeting your plan, you would now have a definite approach on how to make your plan work. It seems simple. At that's what it's all about. It's about how to make your plan work the easiest and smartest way you can eliminating all the guesswork or trial and error methods. Want to increase your profit? This is a good way to do it.
Did you ever stop and think what a unique position you're in as a business owner? I don't know of any other way you can have as much control over your success than owning a business. When you work for someone else, you are totally at their mercy as to what your future may be like. It doesn't matter whether it is a private business you work for or a large corporation. Your future is in their hands. The only thing that might qualify other than owning a business would be to inherit or win a lot of money that would give you everything you want in life.
So how would you go about making a plan like this? Well if you know a fair amount about business, you can. It will take some special calculations and some work but if you know how to put together a Profit & Loss Statement, you can probably do it. You would first do a P&L for the present year for your existing business and the first year and as many years after as you would like to have your plan cover. Your existing business financials will be the foundation for building yourself a business plan for as many years out as you want. This data will tell you a number of things but first if you want to build your plan around what you want in life, you would need to decide some things about your life: 1. You would need to decide how much income you would like to have for yourself for each of the years you plan for. 2. You would need to determine what kind of profit margin you would want from your business for each of the years. 3. And by combining these 2 things into a P&L format you can develop a financial business plan that can extend as for into the future as you would like. 4. The first thing it will show you is how much sales you would need each year to give you the income and profit you would like. Once you see the sales needed, if you know your business well enough, you should be able to estimate those additional expenses needed to overcome capacity constraints that will occur as your business grows.