With just over 2 months to go until the end of the year, it’s time to start planning for next year.  For the 15 years that I was a Corporate Controller, I started the planning process by setting a net profit goal, and then I built the entire company budget and profit plan around that profit goal. 

As a business owner, the first thing you have to do is make a profit goal.  Oftentimes, business owners think of themselves as coming last in the food chain, as if they’re the mouse under the table waiting for the few crumbs to fall on the floor.  They give discounts to customers, pay suppliers, pay employees, and if by chance there’s anything left over, the owner gets to keep that.  If you’re one of those businesses, I can guarantee that your business will under-perform, you will have worn out equipment, and you’ll almost certainly make less money than you should.

As a Controller, I always taught business owners to think differently.  Have a profit goal, and pay yourself first (that’s how they do it in big corporations).  Each manager and each customer should be responsible for providing their fair share towards your profit goal. 

As the business owner, your business is accountable to you.  You owe it to yourself and your managers to hold the business responsible for providing a reasonable profit at the end of the year.  You invest your time and talents into the business, it’s your home that’s on the line, most likely you’ve personally guaranteed every loan the business has taken out – it’s only right that you get a fair return on your time, talents and investment.

Here are a few steps you should take in preparation for next year.

1.)    Project your revenue and profit for this year

2.)    Make a Profit Goal for Next Year

3.)    Have the mindset that you will pay yourself first next year

4.)    Write down a specific plan on how you will reach your profit goal.

5.)    Cut unnecessary expenses – it’s better to be lean, than to be fat.

6.)    Hold your business accountable

7.)    Make sure that someone holds you responsible for sticking to your plan.

8.)    Finish strong this year

If you would like any help setting your business up to make a great profit next year, please call me at 253-846-2804, or e-mail me at john@ControllersAdvice.Com.

Good luck and have fun building the life you desire,

John Wheeler

John@ControllersAdvice.Com

http://www.controllersadvice.com