Page 32 - Best Magazine Winter 2017

MUNDO Y GENTE
Five Tips For Planning
An Abundant 2018
BY: MAURICIO JIMENEZ
End of the year — time to start my or any planning process for next year.
It always amazes me when I come across a company that doesn’t take planning seriously. You think the Maple Leafs or the Blue Jays head into the new season and every game without a plan? You imagine that Apple or Amazon or Facebook just continue on their own way without figuring out where they want to go next and how they will get there? Careful planning is essential to sustained business success. It defines winning for the next 12 months. It gives me — and everyone in my company — a road map for decision making.
So here are five tips for a productive planning process, that I have build thru the years of experience that have gave me success in my Photography Business:
1. I begin by defining my goal.
Every company’s situation is unique, because every owner’s situation is unique. Some want to sell their business in the next few years. Some are looking to grow the long-term value of the company.
Some want to maximize short-term cash flow. Differing objectives naturally call for different plans.
2. I do my homework.
Planning is 99% perspiration and 1% inspiration. A good plan requires several different kinds of data. Sales, costs, and other financial figures, of course—usually for the past three years. Detailed information about the profitability of different products, services, and customers is essential in any planning.
3. I involve my customers in my planning.
One key source of good data are my customers. I ask my customers how likely they would be to recommend my company to a friend or colleague who’s in the market for a wedding or event photographer company. I probe to find out what they like and don’t like about doing business with me. I ask for their insights into potential changes in the marketplace.
4. I write my plan down.
The budget—essentially a projected income statement for the next 12 months—should derive from and reflect my plan. The budget should specify the target gross margin by quarter, and it should project profits accordingly. At the end of each quarter I can see how close you came to the goal and alter your course when necessary.
5. I specify quarterly deliverables, at least for the first quarter.
Let’s imagine that I want to get closer to customers and grow my sales, so in the first quarter I plan to start using a customer- relationship management program. All my actions should help drive results. The point of the quarterly deliverables is to ensure that these objectives don’t fall between the cracks.
At the end I always remember, the objective of any plan is to advance my goal. Planning that does not advance the goal is of little value. But planning that moves your company forward toward the goal is indispensable.
32 THE BEST MAGAZINE WINTER 2017 - 2018
WORLD & PEOPLE
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