Planning business growth in new year

Creating an Action Plan for Business Success

Kimberly DeasBusiness Broker

Murphy Business & Financial Services904-571-9580

Local Economic Outlook

• 96% expect business to grow or be stable*• 92% expect FL economy to improve or be

stable*• 80% expect US economy to improve or be

stable*

• * BMO Harris Bank Survey published in Jacksonville Business Journal, 1/15/14

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Why Create an Action Plan

• Easier to hit a target you can see

• Allows you to deal with reality

• Helps in decision making process

Manage Risk!!

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Steps for Success

• Step 1: Set Goals for 2014• Step 2: Define Business Action Plans• Step 3: Track Success / Engage Employees • Step 4: Compare Results Against Plan

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Step 1: Set a Smart Goal

S mart

M easureable

A ttainable

R ealistic

T imely

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Tips for Setting Goal

• Goal is more than a number: – Revenue streams– Average selling price of each unit– Sales next year

• Break down 1 year into quarters / month– Are they achievable?

• Adjust year plan, if needed

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Example: XYZ Company

• 3 year goal: Sell for $1M• The adjust profit: $500k

Profit of $500k need sales of $2M for her

• Current sales: $750k• Year 1: $1M• Year 2: $1.5• Year 3: $2M

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Example: XYZ Company

• Goal: $250k growth for 2014• Average client is $2500/mo• Each new client is $30k/year• Needs 8.3 new clients per

year to meet this goal

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Step 2: Create Action Plans

Financials

Monthly Sales? Sales Mix? Cashflow? Cost of Sales / Employee?

Sales per Hour / Day?

OperationsProduction

requirements? Labor Requirements? Process in Place? Efficiency Improvements?

Marketing / SalesLow Hanging Fruit? Where to Market? Expected Return per

Channel How to Incent Sales?

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Marketing / Sales: 5 ways to Increase Revenues

1. Ask for referrals2. Increasing Value offered3. New Customer Pools4. Increase prices / new product5. Low Hanging Fruit

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Example: XYZ Company

• 8.3 clients / year = 1 client a month

• Activities to get 1 client: – Attend networking with target

market– Nurture existing potential

clients with potential for $2500/mo

– Increase turn around time per client (2 weeks to 1 week)

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Step 3: Success Tracking

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Step 3: Enroll Employees

• Share metrics with staff• Reward staff for achieving specific defined

results

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Step 4: Compare against Plan

• Set aside time each week to review monthly objectives

• Have an accountability partner (call last day of the month)

• Write a quarterly report on your progress

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Tips for Staying Focused

• Have a goal list and a daily to do list• Set priorities (and stick to them)• Join Peer to Peer Mentoring groups• Hire a business coach

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Questions?

Kimberly Deas Business Intermediary

904-571-9580k.deas@murphybusiness.com

Sellyourbusinessflorida.com

16www.SellYourBusinessFlorida.com

904-571-9580