Do you plan out your company’s projections for the future?
Annual projections should be one of the most important things you do in your direct selling home-based business.
It is important to know what is happening inside your company and in the industry you are involved in. This helps you identify problems and solutions for what if this is to happen.
So let’s look at what you might measure:
- Billable hours – hours that you spend on money making activity
- Prospecting – how much time is spent seeking and securing new business
- New accounts
- Retention of previous accounts
- Turnover and the reasons
- Gross Margin
- Sales Goals
- Recognition and awards (if your company does that as it usually ties to money making activity)
When you know these things you can also identify early warning signs or problems.
- You can be official and set a rolling 12-month period by month – but this should be updated at least monthly.
- Long range strategic plan of 3-5 years. Then you start from today and make 12-month projections.
- Budgets – typically cover one calendar year. These can help you be consistent with your 12 to 36-month plan.
- Cash forecasts – cash flow is measured instead of accounting profits. Timelines for this can be daily, weekly, monthly, etc.
Now let’s look at your team. You can usually tell who is serious about their business because they know what is happening with their income and their expenses and how it relates to their long term goals.
Lewis Carrol said, “If you don’t know where you are going, any road will get you there.”
When it comes to business, you want to know where you came from, where you are and where you are going!
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Have an outstanding day!!