Here’s a cure for that “Oh, a business plan is too big and too tall and I don’t want to do it” syndrome:
- Do a sales forecast. Do just that. For the next 12 months, break your sales into major categories, and think about units, price per unit, sales, cost per unit and costs. Here’s an example:
- Commit to reviewing results every month. Set up a schedule, timing, attendance–and maybe even the lunch menu for that meeting next month.
Not so hard, right? Nothing which takes that much time. But, with any luck, just starting the process of projecting your sales and then tracking the difference–and there will be a difference, of course–gets you started with planning.
The next thing you know, you’ll be thinking about why the difference, what’s working, what isn’t, how to improve things … next steps and all that.
Want more on how to do a sales forecast? I’ve got more:
- Forecast your sales … step by step, with examples.
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This is good advice. Building sales projections from the bottom up and thinking about unit sales, prices, and costs is very important. It’s a good first step to full projections or a business plan.
Perhaps, more importantly, this analysis will go a long way toward validating your business plan when potential financing sources and employees do eventually read it. You will gain credibility, since your numbers will be based upon science as opposed to guesswork and fluff.