It’s a common habit, amongst the most successful SME’s around the UK, to use this time of year to plan for the next 12 months of business and what they would like to do.
The way they do it is slightly different to how most people would plan.
Most business owners just pick a number out of the sky and use that as a target e.g. “We want our business to grow by 10%/20%” etc, without any real thought as to how they came up with that number.
What the most successful business owners do is look at their ideal lifestyle by the end of the following year and cost it out, and then use the business to produce the necessary funds.
And isn’t that really why we started our own business? – to have control as to what we earn and create an ideal lifestyle.
None of us went into business to just “get by”.
So have a look at your lifestyle and where it is right now. And then look at where you want it to be in 12 months’ time.
Do you want a better house?
A new car?
Private school for the kids?
More or better holidays?
Private Health care?
Housekeeper or Gardener?
Pension/Savings?
Do more of the things you enjoy e.g. play more golf, more days out with the family etc?
Once you’ve worked out what these cost, either per month or annually, you can now look at your profit percentage and work that into your turnover-needed number.
You can then workout, how many customers or transactions are needed to generate that turnover.
When you get real clarity on what you need your business to generate to give you your ideal lifestyle, your planning for generating that income into your business becomes a lot more straight forward.
If you’d like to see how this could work for you then give us a call on 01323 406060
