Year-End Business Planning

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By Octavia Conner

Annual financial planning is one of the most critical tasks a consultant should do.

The year-end business planning should take place well before December, and then in December, you want to finalize the plan.

In today’s post, I will identify four essential items you should include in your year-end business plan.

Let’s say it’s December of next year, and you are looking back at the last year of your business, AND you are blown away. You are super happy about the success and accomplishments of your business. What does that look like? 

I want you to visualize that in great detail. 

Now that you have that image, ask yourself a few questions.

  1. What would have had to happen to make that type of success and accomplishment possible?
  2. Who would you have on your team?
  3. What service, product, or project would be your signature item?
  4. At what price point would you make everything possible?
  5. What would your monthly, quarterly, and revenue earnings be?
  6. How much money would remain in your bank account by the end of the year?
  7. What key metrics must you have reached to make that level of success possible?


When you answer those questions, you are reverse engineering your success. 

Create a three scenario budget

The next step is to create a budget for your business that will clearly identify your business’s money plan. You should have at least three budget scenarios for next year, Optimistic, Pessimistic, and Realistic.

Optimistic  – you are reaching for the stars! Yes! What is the highest level of success regarding revenue, and ideally, what would your cost be at that level? 

Pessimistic – if nothing changes or things get worse, what will your revenue, cost, and profit be? What expenses must you cut to float your company during those times?

Realistic – based on your annual growth rate over at least the last two to three years, what will your revenue, cost, and profit be if your company continues to grow at that rate? 

The next step is to create a Sales Plan and Quota

Even if you are the salesperson for your consulting firm, you should still have a monthly quota that you desire to reach. For example, here at SYTP, I am the salesperson. Each month I write down the number of clients I desire to sign.

Because I’m also aware of my closing ratio, which as of the date of this video is 50%, if I desire to obtain three new clients, that means I must speak with six potential, ideal clients at a minimum. Therefore, my sales quota would be three, my desired discovery sessions booked would be six, and my desired closing ratio would be 50%.

Get Your Team Involved

If you have a team, make them aware of your annual financial plan. You can even involve your team in the planning process. I also recommend you incentive your team’s efforts. If they bring new clients to your consulting firm, reward them and make it a competition amongst your team members. Team collaboration with planning and client acquisition gets everyone excited about the company’s success and how they have contributed to that success. When your team begins to feel as if it’s their company or they are essential to the company’s overall success, they will work harder for you. 

Departmental & Team Key Performance Indicators

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