Hello to the year of Planning Your Profits! It is a fresh new year and all of my Entrepreneur friends are buzzing about with momentum to reach the goals they’ve set for this year. In a conversation at a networking event, I realized that there are still a number of you out there that haven’t even thought about this year…you’re just going through the motions.
PLANNING YOUR PROFITS
Let me tell you about the power of Planning your Profits. If you have ever been challenged with inconsistent income flow, you’ll want to pay special attention. This method of planning starts with the end in mind. Take the annual revenue you’d like to reach and break it down backwards. How much money do you need to make each month to hit that goal? If you have flexible revenues, which months are more lucrative and what are your slow months? How many clients or level of sales do you need to reach your goal? Then plan forwards with how to obtain that target number of new clients or the number of units that need to be sold.
VACATION PLANNING FIRST
I’ve reverse-engineered my annual planning by scheduling vacations first. I know you think I must be crazy, but let me tell you why. First, I want to be sure I take vacations. I could work forever and have it feel like fun, so I have to build in down time to refresh and renew. Second, I love to have fun whether I’m traveling or doing a staycation. By scheduling my vacations first, I ensure I don’t take on projects during that time, and also build up business around those vacations to ensure I still have cash flow I’m not going into massive debt.
MARKETING FUELS REVENUE
I start looking at the year in smaller pieces…quarter by quarter. I determine when I will need (or can take on) the most business and attach a forecasted revenue figure to aim towards. I want to see that figure in front of me so I can surpass that goal if I can…I mean if you are going to create goals, you might as well crush them, right? Then I build in my marketing efforts with enough lead time to feed those time periods. Each year I evaluate my marketing efforts by asking the following questions:
1. Do I need to launch something new?
2. Do I need to adjust my marketing strategies?
3. Is there something that is more effective that I should be doing?
4. Is there something not working that I need to cut?
Then I look move on to systems review. Systems can save you a ton of time and position you to delegate them to your team, so if you haven’t built any yet, it is worth the time investment. Here are the questions I answer:
1. Is there anything I can streamline?
2. Do I need to build a new process?
3. Is there new technology that can support my efforts?
4. How can I create more happiness for my clients and colleagues?
5. How can I enjoy my job more?
I like to do challenges every now and then I call “$10k Right Away” where I look at generating fast revenue to generate income for reinvestment, savings, or just to bump up cashflow with a slow month or even a slow season. I work my New Client Explosion System for anywhere from 7-14 days periodically through the year. I build those into my year if I can see what is ahead, or add it in when work is slow.
START PLANNING NOW
Get out that pretty new calendar with all of those fresh pages and get planning! Schedule your vacations, plan your marketing efforts, create better systems that increase happiness…you’ll be so glad you did!