

It’s hard to believe it’s almost Q4 and time to start planning for 2022! Even though it’s an annual event for every company, it often seems like an overwhelming task. To help make it feel more manageable, I’ve mapped out ways to smooth out the top three stumbling blocks businesses face when planning for the coming year.
Stumbling Block #1: I don’t know where to begin!
Not knowing where to start often comes from a lack of clarity. Busy entrepreneurs and business leaders I work with often find that their focus becomes fragmented. While attempting to attend to myriad aspects of the business, time and energy are spread thin, decisions are either not made or once made, not properly implemented. To help establish clarity a solid framework is invaluable, giving leaders a clear path and tangible action items that will create structure, provide the company with clear objectives, and get everyone moving in the same direction. Consider implementing the Entrepreneurial Operating SystemTM (EOS), coupled with the Vision/Traction OrganizerTM, detailed in Gino Wickman’s book, Traction – Get a Grip on Your Business. It’s a great way to level set your company’s mission and goals, which then dovetail to create the proper systems and actions needed to meet goals for growth and scalability. Read more about getting the right tools and systems in place to achieve both strategic and financial clarity, so you always know where you stand and where you should be headed.
Stumbling Block #2: I’m uncertain of my company’s year-to-date performance and where to find that information.
Your financial statements not only tell you where you are but help you track progress, identify deficiencies, make adjustments, and plan for growth. To gain a solid foothold as you plan for 2022, learn to understand and interpret these primary financial reports.
Learn more about preparing and interpreting these critical financial tools for your business and how they can help you with ongoing planning.
Stumbling Block #3: I have no template for preparing a budget.
Every company needs a budget – but more accurately, you need a profit plan. Budgets, or profit plans, have traditionally been prepared for the accounting year. But that may not be realistic or yield an accurate plan since many factors that affect profit planning can change rapidly.
My solution is a rolling, 12-month, profit plan which means re-forecasting the next 12 months each quarter. This allows you the flexibility to incorporate changes as they occur, yet you always have a one-year plan. Here are the basic elements of creating and implementing a truly workable budget, or profit plan, for your company:
Learn more about the many nuances of preparing your 90-day, rolling Profit Plan and Cash Flow Forecast. They can be your most valuable tools for financial success as you plan for the year ahead.
Take steps now to position yourself to start next year right – and the next and the next – with a Financial Intelligence Framework that will provide you with a valid, 12-month, operating budget and forecasted cash flow. Standing on a solid financial foundation and working within a strong financial intelligence framework of timely and accurate financial information, you’ll have a plan for growth and confidence in your decision making.
I’d welcome the opportunity to help you create a Financial Intelligence Framework on which you can build for both the short- and long-term. Contact me for a complimentary consultation.