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PLANNING FOR PROFIT

Updated: Oct 25, 2021



There are three types of financial statements you need in order to know where your money is going:

Past-P&L(Profit & Loss), Income, Sales Volume, Cash

Present-Assets, debt, Inventory ratios

Future-Sales, budget and earnings trends


In order to build your own business you need a strong team, systems and controls (methods of evaluating the systems).

TEAM:

Together

Everyone

Achieves

More

When it comes to your team there is no one superstar, everyone works together to create a well oiled

machine.


You also need systems which are processes and procedures for the business. Consider the following:

  • Checklists

  • Scripts

  • Samples

  • Templates

  • Software

  • Policies/Procedures


Finally, you need controls which are methods to evaluate the systems:

1. Visual Controls

2. Procedural Controls

3. Embedded Controls

Finally, you need controls which are methods of evaluating the systems.


10 REASONS TO PLAN

Charts the future you want to create

Filters the opportunities which advance your mission and provides highest ROI

Identifies the optimal market segments and specific customers to pursue

Focuses employees’ efforts on target customers and markets

Reduces confusion about present and future directions

Guides consistent and focused decision making

Helps everyone allocate scarce resources: time, people and money

Enables you, your Top Team, and your staff to shape the future

Provides a baseline against which to measure progress and achievement of goals

Helps employees understand how their performance impacts the company’s performance


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