Start the New Year with a 2017 Profit Plan
Are you ready for 2017 to be even better than 2016? If so, take a few minutes to reflect on the three questions below and take action to set your 2017 profit plan.
Question 1: What were the three best business things about 2016?
No need to re-invent the wheel. If you knocked it out of the park in 2016, can you wash, rinse and repeat these tasks in 2017?
If you are having trouble thinking of three things, here are some hints:
Summarize the three best things that happened in your business for 2016 and think about how you can repeat them to enhance your 2017.
Question 2: What were the three worst business things about 2016?
While we do not want to dwell too much on our failures, we do want to learn from them. Think about the three things that are causing you to lose time, money or gain stress, and decide if you can make changes for 2017.
Question 3: What vision do you have for your business in 2017?
At the end of 2017, what has to have happened in order for you to have a successful year? Think in terms of metrics as well as intangibles, such as peace of mind and happiness.
Once you know your destination, the fun is in creating a roadmap to get you there.
Your 2017 Profit Plan
If your vision includes financial goals, then creating a profit plan is one way to measure your progress throughout 2017. Start by deciding how much profit you want to make in 2017.
From there, you can compute your revenue goal and make a plan. Then you can add expenses to complete the budget.
Here is an example: Let us say you want to make $50,000 in profit for 2017. You can do that in a number of ways:
From your profit number, you can create a revenue plan. This plan should include how many items you need to sell, like this:
Once you have your revenue plan, you can fill in your estimated expenses.
You might be thinking that this sure sounds a lot like making a budget. And it is. But it is far more fun to work on something called a profit plan than it is a budget. And if you need us to do the number-crunching part, please feel free to reach out any time.
This is general information and should not be acted upon without first determining its application to your specific situation. Please contact your CPA or tax advisor for additional details.
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Successfully meeting the challenges inherent to new and smaller businesses provides me with a special type of satisfaction.