Philip Walcoff - "The Fast Forward MBA in Business Planning for ...

Philip Walcoff - "The Fast Forward MBA in Business Planning for Growth"Breaking out the revenue among the various elements of your business (clients, product or serviceofferings, and departments or divisions) in Exercise 25 will help you determine how you need to growyour business. This is easier in larger companies, because departments or divisions typically do theirown revenue breakouts; in smaller companies it might be more difficult to do. In a small company, youmight want to set your revenue goals by defining revenues by product or service area.For example, if you are in the photography business, you could break out the revenuesbyPage 97cameras and accessories, film sales and developing, and frames, albums, and other photographicaccessories. If you are in the construction business, you could break the revenues out by remodeling andnew home construction and by labor and materials. If you are in the computer business, you mightbreak out your revenues by hardware sales, software sales, training, and consulting.Another approach to setting a five-year revenue goal is to depict a specified growth rate, as follows:• Achieve a compound annual sales growth of 25 percent per year through the next 5 years, resulting ina revenue of $15 million in 2005.By client area:CommercialIndustrialGovernment$8 million$6 million$1 millionBy service or product area:Waste-removal servicesRecycled products$7.5 million$7.5 millionBy operating division:file:///C|/Documents and Settings/gasanova/Local Setti...orward_MBA_in_Business_Planning_for_Growth/e-book.html (110 of 219)16.02.2005 13:54:23