Ring in the new year with your 2022 business and financial plan!
As an entrepreneurial consultant, this is the year you want to make sure you maximize your success and profitability!
To start, I recommend you reflect on last by identifying your wins, losses, and lessons. Then you use that information to plan out 2022.
In this video, I will identify a few items you want to include in your 2022 business and financial plan. I also have included a link to our free SYTP Annual Plan for you to download.
What Goes into Business and Financial Planning?
As a CFO for several small businesses, I believe in planning, I believe that creating a plan for your consultant firm will position you to achieve your goals faster, smarter, and strategically IF your plan is prepared correctly.
A plan also helps you identify what resources, such as the capital and team members you would need to meet, possibly exceed your goals.
So, let's dive into how to create your 2022 business plan.
Identify your Annual Business, Revenue & Profit Goals
Not only should you identify what you desire to bring in - Revenue. You also MUST get crystal clear on what you desire to keep in your business - Profit.
Identifying your revenue and profit goals will effortlessly help you get clear on what your expense cap should be.
For example, if you desire to keep $40,000 per month in your business and your average revenue goal is $100,000 per month - that means you cannot spend more than $60,000 on expenses.
Do you see how that works and how that will help you?
Also, when creating your annual business plan, I want you to create three scenarios - Optimistic, Pessimistic, and Realistic scenarios.
You need to identify what your business will look like in each scenario.
For example, some things you want to think about are:
- What will your revenue, cash flow, and profit be?
- Who will be needed on your team, and can you afford to have them?
- What service will you offer and at what cost, and how many do you need to sell?
I have included a link to my SYTP Plan, which will help you create your 2022 plan. Use that workbook and this video to develop the blueprint for maximizing profits and cash flow.
Identify your primary focus, success metrics, and priorities for 2022.
- What is most important for your business for 2022?
- What will make you feel successful when it's all said and done?
- What are your top priorities or success metrics for this year?
- Your plan should weave the action items you must take to reach those success metrics or complete those priorities.
- Your plan should make your primary focus come to life!
Create Quarterly Milestones (or plan)
Take your annual plan and break it down by quarters or every 12-week period. This will help you laser focus on the small milestones that will lead to the big win.
You need to identify the action items needed to achieve that quarter's revenue and profit goal per quarter. Also, I highly recommend you identify the lead and lag indicators that will affect your success.
For example, what have you done or must you do that will lead up to achieving your goals. Is there a certain amount of live streams or videos you must complete? Is there a certain amount of potential clients you must speak with, blog you must post, Clubhouse rooms you must host, or project proposal you must write to achieve your goals?
You have to get crystal clear on what you and your team must do that will lead up to achieving each quarterly goal.
If you only focus on the Annual Plan, you will probably NOT feel the urgency needed to achieve your goals faster. You may feel as if you have 12 whole months and 365 days, and then you get to the end of the year and feel as if you came up short of achieving your goals.
By breaking the annual plan down into quarterly milestones (or plans), you create a sense of urgency to make things happen faster!
Create a 2022 Budget
You want to create a budget that breaks down each income and expense category by month.
Your budget should also forecast what your monthly, quarterly, and yearly cash flow and bank balance will be once you achieve the numbers outlined in tip number 1.
Identifying those items is critical to help hold you accountable.
Don't leave anything out of your plan.
Make sure that you examine every area of your business when creating your plan. And don't be afraid to make the tough decisions. Maybe it's time to add or remove team members. Or, perhaps it is time to change vendor, like get a better accountant, HELLO. Maybe your need to increase your prices by 50%
I want you to think about your business's day-to-day operations and, most importantly, think about your business from the success level.
If your goal is a Million-Dollars this year, what would the million-dollar you do?
How would the business operate at that level, and how are you operating now.
Next, you want to bridge the gap between those two places.
If you need assistance creating your 2022 business plan, click the link below to download our free Profit Plan today.