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MA A IGP R N R N GN A T E
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BUSINESS PLANNING FOR 2011
Many clients and business contacts are shocked that our firm is already planning for 2011 when its only July. In this economy, there is no such thing as being too early. Early allows you to be asking the key "what if" questions. In our 2011 Business Insight Planning Session, we asked ourselves the following questions that could be helpful in your business planning efforts: 1. What do we want net profits to be? Set the expectation upfront, taking into account market conditions. 2. What is the forecast of expenses for next year? Deepen the questions to get more detail such as
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Where can expenses be further lowered without cutting quality and service? Can automation of business process help? Have we engaged with our vendors for cost saving or efficiency recommendations?
Where are inefficiencies in our organization?
What are our business risks and how do we incorporate those risks into our decision making process?
What does top line revenue need to be?
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Where will this growth come from? How much from existing clients versus new clients? What do our clients need from us to be a success in these current market conditions?
Do we understand those key elements of success and roadblocks for our clients? Are we a resource?
In order to answer these questions, we brought our "C" suite together and had various business advisors of the firm or our own trained consulting groups listen to our comments, reflect, and come back with suggestions as to what they heard, possible solutions, and action plans with individual’s assigned responsibility to implement those solutions (whether it be an internal or external sourcing). We then reworked the financial forecast to see if we could still achieve our goal in obtaining bottom line profit number. If not, we went back to reviewing expenses or revenue increases to continue the process including "what if" scenarios. The last thing we or any business wants to do is reduce the profit goal. As an organization, we have to start now to start to realize those revenue increases or expense declines starting the first of the year (or as soon as possible in the current year). If you would like more information regarding our approach, let me know, or, if you would like us to facilitate a Business Insight Planning Session with your organization, we can arrange a meeting with your partner-in-charge and a multi-disciplinary team, to listen, reflect, and provide valuable feedback to your plans in 2011.
David Krajanowski, CPA Managing Partner