Look to the future with planning to ensure you are running your business successfully.
When you think of taking a holiday, you make decisions about where you want to go, what you want to see and what you’ll do during the trip. Even if you decide to go where the whim takes you, you’ll still see the signposts along the road and make decisions about which way you’re going to go.
Business is no different to planning a holiday, you need to have a plan on where you want to go and how you’re going to get there.
Firstly, you need to set financial goals, this may be a revenue target, or a profit target or capping expenses at a particular figure, it’s your choice what is important to you.
Using those goals put them into a budget projection and fill in the rest of the details with the cost of sales, expenses and other payments. You may do this initially using annual figures and then break them down into monthly figures taking into account any seasonal...
Taking the time to reset your business goals throughout the year can provide great value.
The old saying is that time flies when you’re having fun, but I think that needs to be upgraded to time flies when you’re running a business. Weeks fly by, then it’s months, and before you know it, we’re almost at the end of the financial year and halfway through the calendar year. Yikes.
While a new financial year is a great time to set goals and budgets for the next financial year, the key is not to set them and forget them. Goals and budgets need to reviewed and re-assessed throughout the year.
There’s nothing more discouraging than setting a lofty revenue goal at the beginning of the year, falling short of it on a monthly basis for the first few months and then feeling like a failure for the rest of the year.