Step 1: Defining Clear Business Goals The Include Profit Targets
Diana Miret
Christian Fractional CFO and Financial Strategist for $1M-$10M Businesses | Speaker | I provide financial counsel to service-based businesses to increase profitability, cash flow, and heighten financial confidence.
The first installment in our series delves into the essential step of defining clear business goals keeping profit in the FRONT of the your mind.
The act of articulating a goal can be business-changing and should not be taken lightly.? Please don’t just say to yourself and your team “We will hit $5M this year” without thinking through HOW and most important WHY.? Goal setting is a whole other blog post, but for this exercise we can set goals that include increasing revenues, reducing expenses, expanding to new markets, investing in new equipment, hiring key personnel, etc.? A clear sense of purpose MUST guide your budgeting process and it MUST include profit.
The goal should include a profit component: "We will make 20% profit margin this year while entering a new market ..."
Set the intention for profit up-front.
Go ahead, write your 2024 business goal with a concrete and realistic profit baked in.
Step two focuses on estimating revenue realistically. We'll emphasize the value of analyzing historical sales data and projecting revenue accurately. Discover how a data-driven approach can uncover hidden opportunities and why setting achievable revenue targets are essential for profitability.