How to Plan Profitable Business Projects with Confidence

Transform Your Business Initiatives into Success Stories with Structured Planning and Strategic Execution

Planning and executing business projects can be daunting, especially if you're venturing into uncharted waters. Whether you are a startup or have an established company, understanding how to break down and manage your project-based tasks can set you up for success. In this blog post, we delve into the critical steps discussed by business coach Tanner O’Brien and host Kay in their latest episode on "Coaching FFS," providing a comprehensive guide to take your business projects from concept to profitable reality.

Finding Your Number and Reverse Engineering

One of the key insights Tanner shared was the importance of finding "your number" — the net income you wish to achieve from your project — and reverse engineering from that figure. This approach allows you to focus not merely on gross revenues but on what truly matters: the net profit you retain after expenses.

1. Identify Your Desired Outcome

Start by defining what you want to achieve. This is not your gross revenue but your bottom-line profit. Are you planning an event? Ask yourself, "What net income do I want from this event?"

2. Calculate Your Expenses

Once you have your target profit, list out all the potential expenses associated with the project. This includes both variable costs (expenses that vary depending on the level of output, like ticket printing costs for an event) and fixed overheads (expenses that remain constant like venue rent).

3. Determine Your Required Revenue

After defining your expenses, calculate how much revenue you need to generate to meet your desired net income. This step involves backtracking through your expenses to ensure that your target profit is realistic and achievable.

Building a Profit and Loss Spreadsheet

Kay highlighted the transformative impact of using a detailed profit and loss (P&L) spreadsheet. Initially, she had a simplified version, but with Tanner’s guidance, she created a robust, dynamic model.

1. Create a Basic P&L Framework

Start with a simple spreadsheet. List down all anticipated revenue streams on one side and the expected expenses on the other. Initially focus on high-level categories like ticket sales, VIP packages, sponsorships for revenue, and venue hire, catering, marketing for expenses.

2. Fine-Tune the Details

As Tanner suggested, refine your basic framework by adding more granular details. For example, break down your ticket sales into different categories (e.g., early bird, regular, and VIP) and estimate the quantities and sales price for each.

3. Iterate and Adjust

Continuously update the spreadsheet as you gather more information. If new expenses appear or you adjust your pricing strategy, promptly incorporate these changes and analyze their impact on your overall profitability.

Setting Realistic Sales Targets

A crucial aspect of project planning is setting and achieving realistic sales targets. Tanner emphasized reverse engineering from your profit goals to determine how many tickets (or product units) you need to sell.

1. Break Down Sales Goals

Identify how many tickets or product units you need to sell at each price level to meet your revenue target. This step will help you set clear, actionable sales goals.

2. Allocate Efforts by Sales Channel

Determine how your sales will be divided across different channels. For instance, assess how many sales might come from online platforms like Eventbrite versus direct sales through your team.

3. Monitor and Measure Progress

Track your sales on a regular basis and measure them against your targets. Use this data to identify any shortfalls or areas needing more attention and adjust your marketing and sales strategies accordingly.

Mitigating Risks and Reducing Fear

One of the significant benefits of detailed project planning is the reduction of business risks and associated fears. Both Tanner and Kay stress the importance of having structured plans to reduce uncertainty.

1. Plan for Contingencies

Having a detailed P&L and realistic sales targets allows you to incorporate contingency plans. Identify potential risks and have backup strategies for different scenarios.

2. Reduce Anxiety by Being Proactive

Fear and anxiety often stem from the unknown. Comprehensive planning gives you a clear roadmap and makes you proactive rather than reactive. Track your metrics and adjust your strategy in real time.

3. Leverage Expertise

Working with a coach or mentor can provide invaluable insights and guidance, helping you navigate complexities and refine your strategies, just as Tanner did for Kay.

Conclusion

Structured project planning and strategic execution can transform your business initiatives into profitable realities. By identifying your desired outcomes, building a comprehensive profit and loss statement, setting realistic sales targets, and being proactive in risk management, you can significantly enhance your chances of success. As Kay from Coaching FFS discovered, having the right framework not only sets you up for success but also makes the journey more enjoyable and less stressful.

If this topic resonated with you, or if there are areas where you still need guidance, feel free to drop your questions in the comments. Let’s tackle those concerns and turn them into opportunities for growth and success.

Watch the video version of this topic HERE on YouTube