“Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” ~
Abraham Lincoln. What a great quote
Like most of us, I love quotes and so I built one for January 2024.
Start Things won’t change unless you change.
Edit ++Outcomes won’t change unless you change the inputs.
Positive Outcomes don’t just happen, you have to input appropriate actions.
Maybe not profound like Abe’s! but it is a good message about planning for 2024.
Let’s define Positive “OUTCOMES” and once done determine the appropriate “ACTIONS”.
- You could look back at 2023 and look at your achievements.
- You could consider what areas of your business (or life) need attention as they aren’t quite right.
- You could consider your resources: – Funds, Team, systems, brand, fixed assets, premises and how they could be better utilized.
As a guide and an outcome that encompasses almost everything, I would like to suggest you consider your NET PROFIT AS A PERCENTAGE OF SALES…… (before taxation and after adjustment for market remuneration for the working owners.)
Whilst each business is unique you should aim to have that figure exceed 15%.
Ask yourself what you need to do to move your figure closer to 15%.
This isn’t easy and you probably need help in determination to prioritize the actions that will deliver an outcome towards this goal. Business owners wear 10 hats, – each with competing roles, so how do you ensure your focus is on the most important one and stays there until that outcome is as planned or desired.
NOTE – The payback/reward for this achievement is unbelievable.
- Firstly, the feeling of satisfaction from successfully dealing with a difficult challenge. If the actions to achieve the desired change were easy or obvious you would have undertaken the action previously.
- Secondly, the financial reward of improved profit leads to extra money in the bank.
- Thirdly, the often-forgotten reward of increased business valuation. Businesses are valued at between 3- and 9-times EBITDA (Net PROFIT) and therefore if you lift your profit by say 50,000, it actually increases the business value by $150,000 to $450,000 or more.
If your Net Profit is 15% or better, you will be able to command the higher valuation multiples.
I have listed your business resources above. However, the most important resource was missing:
It is YOUR LEADERSHIP.
Your aim is to achieve quantum leaps in the business performance, by taking small steps in the right direction.
Time is critical – not to waste any but being patient.
Sometimes we don’t get the initial action right, but by measuring outcomes regularly (monthly) we can adjust until the direction is right.
I have seen clients with seemingly unmoveable problems and then suddenly a new approach is implemented, and you wonder why it wasn’t obvious earlier.
This is usually the result of collaboration which is what we offer to achieve progress towards this goal and here’s 3 more quotes to motivate you into ACTION:
- “Planning is bringing the future into the present so that you can do something about it now.” ~ Alan Lakein
- “Good fortune is what happens when opportunity meets with planning.” ~ Thomas Edison
- “Plans are useless, but planning is essential.” ~ Dwight D. Eisenhower.
Call Tony or Nada now to set up your ACTION PLAN for the 1st Quarter of 2024.
We have some exciting news about our firm and its ongoing service offering for you and any of your business associates you would like to refer us to.
Connolly & Assoc