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Prepare and Implement a Business Plan
The last time I got onto an airplane I passed the cockpit and saw the pilot reviewing a map. The pilot was developing a flight plan for our trip. After sitting down I wondered what would happen if the pilot did not have a game plan. Without a plan how would the pilot know where to go? Would he fly to Ontario California or would he fly the plane back to Florida? Running your business without a plan is just like the pilot who is flying without a flight plan - you might end up here or you might end up there. The first step in improving your bottom line is developing a game plan as to how to get there.
* Set a target for the amount of profit (over and above your salary) you want to make for the year.
* Identify what it costs you to run your business on a monthly basis. I recommend breaking your operating expenses into 5 major categories - Sales and marketing, salaries and fringe benefits, vehicle and indirect costs, office expenses and other operating expenses.
* Within each category develop a detailed list of expenses you plan on incurring during the next year.
* Try to identify the actual month you expect the expenditure to take place and budget on a month-by-month basis . For example, if your property taxes of $1,200 are paid in May do not set up a budget of $100 per month. Budget for a $1,200 expense in May.
* Identify the amount of gross profit you need from work produced during the year (targeted profit plus overhead expenses).
* Target specific goals based upon the overall company plan for all individuals in your organization.
* Monitor how you are doing in comparison to the plan on a monthly basis and if necessary make modifications in the plan throughout the year.
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Official Charity of 2008
Remodelers Advantage Inc.
535 Main Street, Suite 211
Laurel, MD 20707
ofc: 301-490-5620
fax: 301-498-6869
Info@RemodelersAdvantage.com