Instead of constantly looking at the year just gone, as a business owner you should always be planning ahead – you should be setting targets, building plans, all to reach that goal.
When it comes to business, everyone compares themselves against “this time last year”, when in actuality what you should be doing is always planning for the year ahead, as past results are no guarantee of future performance.
If you’re looking to grow your business and your profitability you should:
- Build a financial budget and plan
- Understand the growth and changes needed to achieve that plan
- Work with us to quantify exactly how to achieve that goal
To help with your growth and profitability, lets look at the theory of 80/20.
The 80/20 Rule (or Pareto Principal) states that 80% of your results come from 20% of your inputs. This rule is universal and applies to everything, from having a musical hit to the size of cities. In relation to your business, it means that 80% of your profit is being generated by 20% of your inputs – customers, staff, or products.
Think about that – if 80% of your profit is being generated by 20% of your customers what are the other 80% for? To maximize your profit you must know your 80/20. If you don’t, you can’t properly plan or build your business.