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By Corona at September 01 2019 07:14:53
Developing Planning Modules: Compartmentalizing your plan by developing planning modules or "chunks" allows you to attack the plan in parts, yet still maintain a cohesive plan. I have found that developing an annual plan made up of quarterly targets _ thus becoming a rolling quarterly forecast financial model _ allows for a cohesive structure along with the nimbleness to react to market conditions. At the end of each quarter, a true_up process to align results to annual targets needs to be re_forecast and adjustments made.
As an example, let's say your current average number of transactions per month per customer is 3nj. Which says on average each customer does business with you 3 times each month. You could calculate how much more profit you would get if you could increase it to 3Ǒ. And I can tell you that would probably be enough to meet your plan. And if that did generate enough profit, all you would have to do is maintain everything else; sales, expenses, labor, average dollar sale, etc, and then just figure out how you could increase your transactions from 3nj to 3Ǒ. Maybe it could be with some type of promotion that would get customers to come in more often.
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