YOUR RENEWAL PLAN - HOW DO I PICK FROM THE OPTIONS? - WILLIAM EASTMAN

PROFIT RADIO..."Let's Grow Together"

Introduction
Today I am wearing my F Hat - Finance or the Money Guy. That means I am looking at results from Operations, Customers, and People and how well the owner - me, multiplied those processes. Never forget that financial performance is the result from running the business right.

The second issue is the Stage of Growth. We are at Stage VI where the concern is creating a new reality. Unlike when you started the company, the offer going forward is far more uncertain. Add to this the additional pressure of getting it right; you are facing with the irreversibility of a bad decision. Your decision on where to spend retained earnings will determine if the company reaches exponential growth or even survives.

Last thought before we start, I want to invite you to my new group on our Community of Commerce - Living the Life . If you are a serial entrepreneur and looking to discuss how to build a business that runs itself so you can start running multiple businesses - this is the right spot.

Objectives - The WHY
You are finally joining the Executive Ranks. Want to know where the C Suite (CEO, CFO, CIO, etc.) spend their time? Looking at a series of decision options and scenario planning each to determine the highest ROI at lowest risk. The most essential lesson to learn is most of your decisions are irreversible - meaning bad decisions lead to the company's demise.
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Key Issues - ​Owner/Manager Perspective:

1. Planning tool - allows you look at various potential outcomes and the requirements for each.
2. Risk management tool - identifies key assumptions and tests it against real events.
3. Break even and failure tool - identifies the minimal level of success needed and potential failure risks.

What You Need to Know - The WHAT

• Building a spreadsheet.
• Your Value Proposition & Business Model.
• Your yearly Business Strategy.
• The Assumptions and Knowns that the Business Strategy was based on. 
• EPISODE A6.002 ANALYSIS OF STAGE V PERFORMANCE
• EPISODE A6.003 REVIEW STAGE VI PLAN - FOCUS ON PLANNED INVESTMENTS - EQUIPMENT, PLATFORM, AND  PEOPLE​

What You Need to Do​ - The HOW

1. Build a spreadsheet for each potential scenario.
2. Ensure your knowns (information that is verified) is isolated from the assumptions (unknowns with educated guesses or SWAG's).
3. Run the numbers for each scenario to identify potential ROI and Risks.
4. Identify how and whom is going to track the known information and update the spreadsheet
5. Identify how and whom is going to track the assumptions and update the spreadsheet.
6. What mechanism will be used to advise of information updates to the spreadsheet.
7. Whenever information is updated - rerun the numbers for each scenario.

The purpose of this show was to cover a method for creating several scenarios for deciding which of your options are the best - highest upside with lowest risk.
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Make sure you leave some thoughts in the comment section below. I am interested in continuing the conversation.

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