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By Robert Counts and Chad Counts robert@countsbusinessconsulting.com | crcounts@countsbusinessconsulting.com

Create a Road Map for 2015

he close of the year is always a great time for past reflection and forecast- ing the future. So before you set sights on 2015’s goals take the time to figure out what has changed since last year, where the company currently stands, and where you are headed. You have to know you are on the right or wrong path in order to build the bridge forward. As an owner or manag- er, you need to have a clear and com- prehensive understanding of what aspects of your organization are ready and equipped for growth. This review should be done at all levels of the organ- ization from owner to manager to employee.

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Review Where You Stand 1. Determine if a previous goal was

accomplished, partially accomplished, or won’t be accomplished.

2. If the goal was accomplished, think of how it will be celebrated or rewarded. 3. If the goal won’t be accomplished, determine the reason for falling short. Reasons to miss a goal include goal was unrealistic, customer demand decreased, company was sidetracked (if so, what side- tracked us), or unforeseen circumstances (loss of staff, equipment failures, etc.). Reviewing your goals, especially if you are the one who set them, gives you insight into your tendencies. Just like sighting in a weapon, reviewing the tar- get and where the shot hits lets you make sight adjustments and improve your accuracy. You might notice you are prone to over or underestimate yourself or others. You may have a hard time remembering these goals and notice that you tend to get off track. You may see you do better with short-term or long-term goals. This information is vital for your future goal setting.

What sight adjustments do you need to make? 26 Automotive Recycling | January-February 2015

Celebrate Today & Plan For Tomorrow

For most of us, reviewing old goals and dealing with the likelihood that we fell short in some areas is not something that excites us. Yet, if you cannot take an accu- rate inventory of yourself or your organ- ization, then you have resigned to accept that things will continue as is whether good, bad, or indifferent.

Celebrating accomplishments is an often-overlooked step in the growth process of individuals and companies. Too often, a goal is achieved and we sim- ply plot on to the next goal without acknowledging progress.

Giving recognition to the people who have contributed to progress in your company is vital to its health and future growth, just as recognizing difficulties and challenges that the team has endured.

Often times, if we fail to acknowledge accomplishments and challenges, our employees will lack a sense of what the future will hold. Use this time to come together as a staff around what has tran- spired over the past year and set the new path for this year.

Using Your Financial Software One of the things you can use to assist

in the planning for 2015 is your financial

software (ex: QuickBooks). Our sugges- tion is to run a Profit and Loss Standard for the last calendar or fiscal year. Set your columns to “Month,” and under Options – Other columns, select “% of Income” and then run the report. The report will show by month and for the year all your income, cost of goods sold and expense categories, the correspon- ding dollar amount received or expend- ed and what percentage that is of total Income. To make this most useful we recom- mend you export this to Excel. Once you have done this make sure you save it. With this much detail you can analyze and plan for changes in any and all cat- egories. You can also run your Profit and Loss Standard for a year-to-year comparison. This choice is under Options. These changes can be expressed as “$ Change” or “% Change.” This allows you to see any changes from the previous year to the present year. If these changes were positive and your plan is to continue this rate of change you can use those per- centages to help establish your goals.

Inventory Management Reports Use these reports to see what or who

produced your sales. Also, you can review how many vehicles were pur- chased, average cost, year, mileage, etc. Or you can look at the number of parts sold, average invoice, and percentage of sales by category.

This information will be useful in pro- jecting what you will need to buy, sell and produce to achieve your goals in 2015. ■

Counts Business Consulting supports salvage and recycling business owners seeking to im- prove through PRP Profit Teams, CBC Owner’s groups, or On-Site Consulting, or consulting

on sales, production, buying, pricing, and financials. Visit countsbusinessconsulting.com, cbcdashboard.com, or call (512) 963-4626.

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