Easy To Use Business Planning Tool For Massive Results

Recently, I have taken a small very poorly performing business, with a total of 3 staff with $0 business value to a value of $900,000 in just 18 months.

The key to achieving such a great result was using the BGA-Calculator Business Planning Toll.

The result was truly amazing. I used the same 3-Step Process mentioned in my previous article 'Grow Your Business The Easy Way'.

During the COVID period, I submitted a Business Plan on behalf of a client to the largest trading bank in New Zealand. I received a phone call from the local Business Manager at the bank who advised me it was the best plan they had seen and asked me to speak at their Regional Conference. The business growth information in the Business Plan came from the BGA-Calculator.

This article is to provide a more detailed explanation of the Business Planning Tool, BGA-Calculator, which I consider the most important step in business development.

As they say 'Business owners do not plan to fail, they fail to plan'.

The BGA-Calculator provides exact numbers from which a Plan of Action can be developed, and when implemented will achieve excellent business outcomes, resulting in increased owner income, and business value.??????

How does it work?

The BGA-Calculator will establish a financial revenue target for the next year, combined with monthly activity goals.? Knowing exactly what activity is required each month provides a clear path to success, making business growth so much easier.?

The revenue target is based on several factors, explained below.

But first, people are in business to make money.? A business provides income to the owner by;

1. A wage, salary, or drawings?(Owner Income)
2. Business Operating Profit – Paid as a dividend.

However, some business operators may only set an Operating Profit goal.

Note:? Operating Profit represents business performance. It is the performance of the business that determines its value, creating a valuable asset that one day the business owner may wish to sell (exit strategy).

To establish annual and monthly revenue goals that include increases in Owner Income and Operating Profit, the following information will be factored in;

• Monthly costs to run the business (Expenses).
• An allowance for inflation.
• If a Franchise, Franchise Fees.
• Average Gross Profit Margin as a percentage.
• Spare Capacity analysis to gauge a possible increase in capacity to handle additional business, which may require setting a budget to increase business capacity.
• Marketing. An analysis to gauge the need to increase the company’s marketing budget.
• Recurring Income Analysis. Taking into account subscription income in the planning process.

After having answered a series of simple questions, the business owner/manager will know what is required to achieve their business goals which include;?

• Revenue required, annual and monthly.
• Total Gross Profit in dollar terms.
• Franchise Fees to pay (if the business is a franchise).?
• Number of Leads or Selling Opportunities (retail) required, monthly.
• Number of Quotes required to present to potential customers (if this is part of the selling process in your business), monthly.
• Number of Sales required, monthly.

So rather than just setting an annual or monthly revenue target, this process provides the activity required to achieve the revenue target.?

Business Planning does not stop with the above.

After all, business growth is not just about selling more to increase Revenue. Business growth is also about improving the performance of your business - to make it easier to increase business revenue and profitability.

Making small changes to increase Turnover Drivers is truly a game changer and makes financial goals so much easier to obtain.

Small Changes = Massive Results.

You might ask – “OK, it sounds good, but how do I achieve the Turnover Driver Goals?”

It isn’t difficult. The Business Development Report will provide some ideas as to how to achieve your Turnover Driver Goals, however, we (or your business advisor) can help you through this process if required.

There is another huge potential benefit to consider.

Should you have factored in a budget to increase the capacity of your business, achieving the Turnover Driver Goals, could mean you would not need to spend any money set aside to increase capacity in the business. This money will then be added to the Operating Profit, and as a result, further increase owner income and business value.

The Report provided by the BGA-Calculator will also provide you with Financial Gain information both with and without spending the budget set aside to increase business capacity.

Finally

The BGA-Calculator Business Planning Tool has proven itself to be a game changer.

As with any road map, if you know your destination, then all that is required is a path to follow.

If you are a business owner and would like to know more, then let me know by emailing me at [email protected], I would be delighted to share more information on the Profit Accelerator Program (We will also be looking for Associates to use and share the program).