Are you clear on where your business is headed? As we approach year 2020, it is a great opportunity to consider what you really want for you and your business.
Many business owners make decisions based on what is happening today rather than what is planned for the future.
When considering a business plan, it is more important to consider what the individual owners want, after all, it is the business that is the “engine” to generate income, profit, free cashflow and opportunity for the business owner(s) to achieve their desires.
Now is the ideal opportunity to consider the financial trading performance for the year ahead and consider what that performance may look like in the future.
Are we clear on sales targets? The type of clients that we want to deal with? Should we be reviewing our existing database and identify those clients we may need to sack? Will this create greater capacity to work with those clients who we wish to work with? Do we have too much capacity? Should we be looking at streamlining the workforce or enhancing opportunities for increased income and greater efficiency?
These are just some of the thoughts that business owners have when considering their future plans for growth. Once the plan has been determined, it is then important to consider what strategies, perhaps a marketing plan and client review, to determine whether those plans are achievable. Likewise, when considering expenses or costs of the business, are we buying our materials as effective as possible? What strategies can be adopted to improve the gross profit margin? Do we have a productive team? How can we make the team more productive? Are the team happy? Is our culture consistent with what we want and also consistent with where we are going?
Once setting the plan, do we have the monitoring tools in place to review labour, productivity, performance and efficiency? What other expenses are worthwhile considering to confirm we are getting value for money? In order to achieve our plans, what additional costs may we be required to expand? For example, marketing, technology, staff, expansion in premises, to name a few.
Our future plans are not all financially based, there will be non-financial considerations also, including culture, values, work/life balance and overall well-being of the workforce.
If some of these questions has stirred your emotions, perhaps it is time to sit down and consider your own plans and your business plans. Equally important is to ensure there is a system in place where they can be monitored, held accountable, and achieved.
I have had over 30 years in Business Advisory with nearly 25 years business ownership. I would love the opportunity to sit down and talk about your future plans if you wish.