Summary:  It’s that time of year where we sit down to work on our plan for next year. This year start with your words then the numbers.

It’s that time of the year – we have entered the fourth quarter which means time to plan for next year.  This is a time to reflect on what worked this year, what didn’t work, what needs improvement and what needs to be tossed away. This is a process that requires the whole team to work together for a common goal – on paper at least.

Before you get started on next years plan, take a strong look at the current year’s plan.  Did you follow it? Where the assumptions correct? Knowing what you know now – what assumptions would you make differently? We have a tendency to get caught up in the numbers “we need x amount in revenue”, “we need to decrease expenses by x”, and “what new shinny thing can we add to our services”.

Personally, I like doing the “words” first, it gives meaning to the numbers.

Mission. Very simply, why do you do what you do. Why is your company in business.

Values. What are your guiding principals for running your business. Have at least five which describe how you do business and what is important.

Services/Products. What will you be offering next year in terms of product or services. Will it be the same, improved, new or discarded.

Marketing Plan. How will your customers know what you are offering and when.

Sales Goals. Break it down by product or service. How many of each do you want to provide.

Activity Timeline. Take out the calendar and note it all down. Put dates on it and keep to it.

The Numbers. Here’s where you start the budget part. Take all the previous “words” and start assigning numbers.

This may sound simple, it does take time, work and thought. Don’t jump straight into numbers and you will have a better plan for next year.