The business performance goals you achieve for the next year begin today. In order to achieve business performance goals you must have ones defined.
If this seems perfectly obvious, then why is it that the majority of companies do not have an annual business plan detailed in financial performance terms. Hardly any business has the disciplined management system in place to manage the business to achieve financial performance benchmarks every week.
This is a summary action guide that should help your business performance excel :
1. Define the outcome twelve months from now that you expect. What are your targeted: revenue, profit and cash flow (takes into account investments in non cash assets). I recommend these goals be higher than your historical trend.
2. Define the business performance you need to achieve in the next two months by week to achieve your annual goal.
Steps 1 and 2 become the budget numbers for your business and step 2 is adjusted every week so you are always looking forward two months. Can be three but should not be less than two.
Part of Step 2 should be a cash flow projection. Again it is very important to have a budget for all these items including cash flow.
3. Once you develop your budgeted items then you track actual every week. Now you are in the position of addressing variances. Positive ones should be viewed as carefully as negative ones. You are either investing in more of what resulted in positive variances or address the cause of negative ones.
Since a CEO should be spending most of their time, meaning about 80% on marketing for growth, there needs to be a rationalized process in place where there is clear accountability for the operations in the other key areas of the business.
This process is a management system. If you are an international multi- billion dollar business or a single entrepreneur the principles are the same.
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About: Steve Pohlit is a CPA,MBA and has been the CFO of several major domestic and international companies. Steve is a business owner and an expert business consultant focused on building profits and net asset value. He is very experienced with Internet marketing and social media marketing. All articles published by Steve unless specifically restricted may be freely published with this resource information.