Case Study - Discover How To Never Be In Debt Like This Client!

By: Johannes Nefischer
Submitted: 2007-01-17 15:14:27
Print this article | For publisher | Social Bookmarking
Rating:
 

Today I had a long discussion with one of my clients who never managed to write a business plan and use it for control. Why the hack do you do your book keeping when not using it?

I try to convince the guy now for over a year to come to a meeting and plan his company - a business plan meeting is like playing in the sand box. You build up your plans till you find a way you want your company in one year from now and you document how you will reach this goal.

Because of this "playing" with your company’s numbers you get a better feeling where the money is coming from, which profit centre is bringing you the most profit. And you will find the activities that are eating up your profits.

So back to my client - it is now over a year ago that I first saw that his profits get less and less. SO I called him and told him it would be necessary to take a look at what he is doing - something is wrong.

But guess what his answer was? "I have no time for such a meeting - there is so much work i have to do in my company"

After a year of hard work (he still has so much work) and a year of calling him on a regular basis reminding him and telling him about his financial key figures- he is deep in debt. And I don't think he will manage to make a turn around.

Now you will ask me “why do you tell me this stuff”

I am always asked the same question by my client: "Why do you tell me about the financial stuff, I have so much work and my revenue is great"

I just want to remind you that revenue isn't the stuff that buys you your house or pays you your car - it is profit that counts - and you have to take time to do a planning and review of your finance otherwise you may end up in the same situation as my client - working hard every day - and in the end there is nothing left but a lot of debts.

So take out your time management tool and set an appointment for yourself when you will take your financial statements and review them and write a business plan for the next year. And don't forget to review your plan every 3 months - controlling if you are on track.

Johannes Nefischer is a successful Business Consultant and publisher of http://www.JohannesNefischer.com He provides more information on Business Coach on his website.

Article source: Expert Articles

Most Recent Articles in Strategic Planning category

  • Small Business Finance: Finding the Right Mix of Debt and Equity - By: Frank Goley
    Financing a small business can be most time consuming activity for a business owner. It can be the most important part of growing a business, but one must be careful not to allow it to consume the business. Finance is the relationship between cash, risk and value. Manage each well and you will have healthy finance mix for your business.
  • Why is Business Planning so Critical to Business Success? - By: Frank Goley
    A business plan is an actual guide to starting, acquiring, expanding, building and managing a business. It is a step by step process that will guide you through the complexities and intricacies of building a successful company. Most good business planning experience comes from doing and learning from others who have gone before you.
  • Strategic Planning Process for Business Success - By: Frank Goley
    A strategic and sales plan puts your marketing plan into action and is the implementation work horse of a business plan. This article on the strategic and sales planning process is divided into ten sections, which are presented in a particular, building-block order.
  • Plug Into Your Future by Unplugging from the Present - By: Daniel Burrus
    What if there were a way to predict the challenges your organization will face and stop them from ever happening? Short of having a reliable crystal ball, most people believe such a concept is impossible. In reality, you can solve tomorrow's problems today - you simply need to give yourself time to do so.
  • Budget: A Necessary Part of a Good Business Plan - By: Cheri Alguire
    A Synopsis of how to make a good business plan/budget.
  • Why a Development Plan is Critical to Your Business Plan for Next Year - By: Cheri Alguire
    It is almost time to begin creating your Business Plan for next year. One important part that is often overlooked is what I call the Development Plan. A Development Plan helps you to look at your overall business in different specific areas.
  • How to Become a Successful Business Consultant - By: Shermaine Camacho
    The work of a business consultant is to help organizations improve their performance, primarily through the analysis of existing business problems and development of plans for improvement, including gaining external advice, access to the consultants' specialized expertise, or simply as extra temporary help during a one-time project, where the hiring of more permanent employees is not required.
  • Plan or Planning, Which is More Important - By: Katie Marcus
    Educated marketers who are degree-holders and attended formal business schools would tell you that having a business plan is necessary. That it is very important for businesspersons to have one.
  • Lauton U: The Fundamentals of a Well Written Business Plan - By: Joseph Polanco
    A requisite to the funding process at Lauton Funding is also essential to business in general. Your business plan is a pivotal component of your undertaking and is necessary, not only for putting together a profitable business but, as your company evolves, to help you benchmark the achievement of pre-established goals.
  • How to Get Your Custom Notepads Printed Right - By: Katie Marcus
    Planning on printing custom notepads? Well, there is nothing like using personally designed notepads to impress people with your letters and notes.