Year end..Opportunity ONE for CHANGE

Here in Australia, year end is quickly approaching..30 June.

Its at this time of year that we look back at the past year and reflect on what our business has achieved financially and if we have reached our targets…….. don’t we?

Unfortunately, unless you have a financial management expert / Virtual CFO on your team….you probably just click over from 30 June to 1 July and carry on ploughing through…… getting tied up in the daily activities running your business.

Year end is that time of year when we need to pull ourselves away from “working in” the business to “working ON” the business. This can be done at ANY time, but with a full 12 months of transactions year end is a great opportunity to compare this 12 month period, to the previous 12 month period, and the 12 months before that.

Comparing your turnover and profit achieved to what you actually planned for the year is a quick and easy analysis.

If you didn’t achieve what you hoped, its now the time to set targets for the next year.

I love this quote : “Those that fail to plan are PLANNING TO FAIL!!” So lets get cracking!

Now is the time to do a little “Revenue modeling” – working out how many “what-nots” or “do-dahhs” you need to sell to achieve the turnover you want to reach your dreams.

Then we work out how many “what-nots” or “do-dahhs” you HAVE to achieve to Break-even. In other words how many units do you have to sell to be able to pay your Fixed costs – ie Rent / your salary / permanent staff wages, any costs that remain the same no matter how many units you sell. This will be your “Break-even point”

Then we look at what profit you want or need. What are the costs related to those products, and any other costs which we plan to incur during the next year?