Are you ready for 2017 to be even better than 2016? If so, take a few minutes to reflect on the questions below and take action to set your 2017 profit plan.
Question 1: What 3 things made the biggest positive impact on your business in 2016?
No need to re-invent the wheel. If you knocked it out of the park in 2016, can you rinse and repeat these tasks in 2017?
If you’re having trouble thinking of 3 things, here are some ideas:
• What apps saved you time and money?
• Did you make some good hires?
• Did you let go of a bad hire or two?
• Was there a marketing campaign that really worked?
• Were there any events you went to that generated great ideas?
• Did you add or remove products and/or services?
• Did you buy new equipment or open a new location?
Summarize the 3 best things that happened in your business for 2016 and think about how you can repeat them to enhance your 2017.
Question 2: What 3 things made the biggest negative impact on your business in 2016?
While we don’t want to dwell too much on our failures, we do want to learn from them. Think about the 3 things that caused you to lose time, lose money or gain stress, and decide how 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 consider it 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 road map 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’s an example:
Let’s say you want to make $50,000 in profit for 2017. You can do that in a number of ways:
1. Generate $500,000 in revenue and $450,000 in expenses.
2. Generate $2 million in revenue and $1,950,000 in expenses.
3. Generate $150,000 in revenue and $100,000 in expenses.
4. And so forth.
From your profit number, you can create a revenue plan. A revenue 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’s far more fun to work on something called a profit plan than it is a budget. If you need us to help with the number-crunching part, please feel free to reach out any time.
Here’s to a very happy and prosperous 2017.