Map It: From Here to Prosperity

By Kevin Murray, CPA and George Garner, CPA
Reprinted with permission from Floral Management, January 2001

When Alice, lost in Wonderland, asked the Cheshire cat which path she ought to take, the smiling feline asked her where she wanted to go. "I don't much care," said Alice. "Then it doesn't matter which way you walk," said the cat.

This scene from Lewis Carroll's "Alice in Wonderland" is a power parable for business owners. As 2001 begins, are you on a path that will take you and your business where you want to go? Or, like Alice, are you adrift in a topsy-turvy world with no navigational skills to get you out?

If you found weak spots in your balance sheet, now is the time to plan for the year ahead and chart your course for personal and financial success.

Follow these steps to get on the road to a successful future.

  1. Set Personal Goals. Our clients in the floral industry are some of the hardest working people we know. Are you working too hard? Perhaps you'd like to take a week of vacation and go somewhere with your family. Get out the calendar now, and find that time. Take care of your needs and make them part of your written plan. Otherwise, they'll fall to the bottom of the list just as they did last year, and the year before. This is the year to improve the quality of your life by making it part of your working plan. Free time, satisfaction and peace of mind are more than comforting - they are crucial to long-term business.
  2. Review Current Business. Take a good look at your financial reports. If necessary, ask your accountant to help you identify the strengths and weaknesses. Take a look at our December article for some key indicators of your shop's fiscal fitness. Write down your strong and weak points.
  3. Imagine What Your Business Could Be One Year From Today. Ideally, what does your business look like in terms of customers, cash flow, employees, sales growth and personal satisfaction? If your business were everything you wanted, what would it look like? Write down your vision for the shop.
  4. Identify Differences Between Your Current Business and Your Vision for The Future. What needs to change? Do you want to increase sales, lower cost of goods sold for arrangements or better handle a troubling employee? Write down specific areas that need work and possible solutions.
  5. Set Goals For At Least Three Areas That Need Attention. Don't sweat the small stuff; take one step back and look at the big picture. Write down your goals and be specific. Make them measurable and reasonable. For example, write: "XYZ Florist will increase sales by 10 percent in arrangement sales." For guidelines on industry norms, see "Where Should I Go?" on the next page. Don't overwhelm yourself by stretching too far.
  6. Make An Action Plan. Identify what you and your employees can do each day to reach your goals. How will your operations change? Map out the specific steps needed to increase sales by 10 percent. Write down the steps to take to put each goal within reach.
  7. Communicate Goals To Employees. Employee buy-in is key to meeting goals. Hold a meeting to let the staff know that you're working to make your business the best it can be. Let them know what their role will be in helping you reach those goals. For employees to fully support changes, you must let them know how changes will benefit them. Keep staff informed about progress toward goals with regular discussions. This keeps them motivated and lets them know you are committed to improvement.
  8. Your Course Is Charted - Don't Forget To Steer The Ship. Make time to go over your financial statements each week or month. If you have a bad month, what can you change to make next month better? If your expenses are still too high, identify other ways to save money. No matter how busy you are, look over your financial reports at least once a month. If you do, you'll have a clear picture of where you are and where you're going. If you don't, it's easy to lose sight of goals and slip back into old patterns.
  9. Reach A Goal and Celebrate. Both you and your employees have worked hard to meet goals. Don't let that go unnoticed. Have a party or distribute rewards.
  10. Show Your Ongoing Commitment To Your New Plan. When you're in the shop, stay focused on long-term goals. Don't compromise by using shortcuts or slipping back into old habits. Lots of people make New Year's resolutions. You can be one of the few who keeps one.

The Cheshire cat was right: If you don't care where you're going, it doesn't matter how you get there. Now that you've focused on your destination, you've found a way to reach your goals. Unlike poor Alice, you're not stuck in Wonderland.