Enable your future company sale with this discipline
It’s common to hear a company owner or CEO boldly say, “I’m planning to grow my business 10% for next year”, or it could be 5% or some other growth number but when asked where specifically the revenue growth will come from, the answer is not as confident.
Every business should have the discipline of planning the details that underpin revenue targets. Developing such a discipline could pay you dividends in the future when you want to impress an acquirer showing that your business has effective planning disciplines in place.
Here is an effective template, (Revenue Walk), to help facilitate planning discussions with your team about the year ahead. This template can be customized for any industry and business and it can expand in complexity as you get accustomed to using such a “revenue walk” concept. You’ll see this template also helps you think through the corresponding gross margin related with your revenue detail.
Don’t go into the new year with a vague and unsubstantiated revenue target. Build this planning discipline to identify the “walk” from last year’s revenue to the next. When the day comes you want to exit, having planning disciplines like this in place will help build the value of your business in the eyes of the acquirer.
