If what you want to make (your desired goal) and what you project you'll make (net profit projections) are far from each other, I recommend you keep working the numbers.  Plan what you need to do to bring in more (or more profitable) work or see where you can cut expenses.  Keep in mind - there are only two ways to affect the bottom line - increase revenue or decrease costs.

Figure out how you will generate that much revenue.
Many business owners fail to acknowledge that they have control over their revenue as well as their expenses. To be successful, you need to figure out how many of whatever-you're-selling you need to sell to meet your goal.  If you bid work, how much work do you need to bid to meet your sales goal (assuming you don't get 100% of what you bid)?   Look at my web site and pull the article 'The Sales Elephant' for more information on this. Work through the numbers.

Step #3 - Budgeting - gives your plan 'teeth' and provides clarity and grounding on the financial side, which is critical in having any plan turn out.   NOTE: we offer a Budgeting Workshop that will be taking place in Novato on February 21st if you feel you need help in this area.

 

Step #4 - Track Results.  

Now that you have a plan, with goals, actions, and a budget - you need to hold yourself accountable to it!  

Plan to check your progress at regular intervals - weekly, bi-weekly, or at the very least, monthly. Pull out your budget and look at where you are compared to your revenue, spending and net profit goals.  Review your plan and see what you have accomplished compared to your action goals.  See where you're on track and where you're not. Determine what is working, what isn't working, and what you need to do to bring yourself back on track.  If necessary, adjust the plan - but only if the original plan is no longer appropriate - not because you just missed the mark.  

Managing by results IS the key to success!  

When you have a relationship with where your results, you can make course corrections because you can see the gap.  When you stick your head in the sand because you're afraid to know the truth, you will be disappointed at the end of the year when it didn't happen.

It's easier than you might think once you get started. So, as Nike says - just do it!  And if you need help, make your first action step to call me!

May 2008 be your best year yet!