"The journey of a thousand miles begins with a single step." "The ...

BUSINESS
Your Annual Business Review
By Leah White, ICED
What should your business look like in 2012? Where do you want to take your
business in 2012? Higher sales, higher profit margins?
Whatever your goals for 2012, you will need new strategies. That means you will
need to embrace marketing strategies (e.g. QR or other similar codes); social media –
LinkedIn, Facebook, Twitter, Google+; blogs, web design, and database management for
your customers. Or maybe you are considering acquiring another company.
Leah White
But in order to know where you are going … you will need to plan.
Elements of your plan should include reviews of your business financials, equipment and facility, sales and marketing,
and personnel.
• Payroll expenses – 25% or less
• Operating profit 18 – 20%
• Sales Per Employee (SPE) – minimum of $135,000
• Paper – 10%
– “Paper Costs should rarely exceed 10% of sales,”
says John Stewart, “regardless of whether you are
primarily offset or digital.”
Sales Mix
• Review and analyze the changes in your sales departments.
– This effects your equipment and staffing needs.
Financial Benchmarks
• Compare your financial numbers to benchmarks.
• Determine where opportunities are to decrease expenses
and increase profits.
• Use benchmark numbers to write your 2012 plan.
– Printers’ benchmarks are:
• Cost of Goods Sold – 23% or less
Staffing and Personnel
• Do you have the right talent in the right positions to
take your business to higher levels? (see articles on
Page 18 and 20)
Vendors and/or Contracts
• Ask for better pricing.
• Shop alternate vendors to get higher margins, better
products, and service.
Business Expenses
• Line-by-line review to determine if reductions can
be made
• Compare business insurance rates, telephone and utility
rates, credit card processing fees, bank service charges,
and so on.
22 PARTNERS Summer 2011