Firstly, plan for how much profit you want to make next financial year.

Your forecasted profit may be based on previous year's performance or you may want to choose a magic number to work towards.

Our top three tips for coming up with the magic number are as follows:

  1. Be realistic (this is where you may want to reference historical figures, market factors, competitive forces, economic drivers etc.)

  2. Once you know that number, create a month-by-month forecast which will outline how you will achieve that figure.

  3. Account for peaks and troughs in your sales. No point in forecasting figures that you can't achieve in periods which your customers just won't buy. However, you may need to aim for more profit in your predicted peak months.

  4. Be sure to measure your forecast to actuals every month to see where you can optimise.

And remember, just getting a wage out of your business is not profit. A wage is a return for your effort. Profit in your business is a return or the risk of being in business.

If your business is at a stage where you need some strategic business advice to plan for profit, please give Anthony, Chris or Doug a call on 6566 2200.