Greetings!
June officially kicks off summer and, with that, comes plans for summer vacations. June is also a great time to look back to see how well your business is doing and plan ahead to where you want it to go. Keep in mind: The value is in the exercise of planning, as many written plans are outdated long before their ink is dry. That is why any plan should be a dynamic document, something that is tweaked with each month or quarter or year.
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THE PERFECT TIME TO PLAN
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Summer is
here and many of us are finalizing our summer vacation plans. As with any trip, you
probably have a map,
flight plan or a GPS that gives you directions to
get to where you are going. So why don't many owners map out how they will
get their business to the destination of their choice whether it be a growth target, profitability, etc.?
Here's
why JUNE is a perfect time to put together a plan for your company:
It's a
great time to look back.
Half of
the year is complete and now is the perfect mid-way point to assess how business is going. If you have a business plan
already, pull it out and see how you are doing.
If you don't already have a plan for 2008, look at how well your
business has performed compared to the same period last year. What is driving the results? What are new factors that you need to deal
with this year vs. last? How well have you been managing?
It's a
perfect time to course correct.
Not happy
with your results so far this year? The
good news is there are still 6 more months to go. Now is a great time for you to evaluate what
your year-end goals are and how specifically you plan to get there. If what you did in the first half wasn't
working, now is a good time to adjust your strategy and tactics to achieve your
goals.
It's a
good time to plan for Uncle Sam.
Think it
is too early to start planning for your taxes? Think again.
Taxes are, in many cases, one of a company's largest expenses, so it is important
to know what your liability will be before the end of the year. A P&L forecast will help you determine
what your income will be and how much you may need to put aside to cover your
tax bill. More importantly, now is the time to talk
with your tax advisor to determine what strategies you can employ to reduce
your tax bill as the timing of some purchases can save or cost
you a bundle.
It's a
great time to look ahead.
So, you've
determined what happened in the first half of the year and what you need to do
to change course. But now is also a great time to look beyond the next 6 months to 18 months, 2 years and 5 years from now. What do you see your business doing, or how do
you see it changing? Now is the time to start thinking of the long
term and incorporating in the next six months some plans to lay the foundation
for that vision. Whether it is improving
your cash position to hire another employee, or begin developing
relationships with loan officers to line up funding for large equipment
purchases 2 years out, now is the time to sketch out what you
need to do to achieve those goals.
Planning
for your business may not evoke the same feelings of fun and excitement as
planning your vacation get-away, but it is an important step to achieving your
business goals. The
value in the exercise is not in the numbers you come up with but in the steps
of thinking through how you will navigate your business to get to your goals. Take advantage of some
down-time in the next month and determine which direction your business is
going-- hey you never know what
inspiration lies in a margarita or some time at the beach!
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