The unofficial New Year has started- school. As we pack lunches, run to practices, and oversee homework, we need to start thinking about next year. Any strategic plan is daunting. Creating a plan that integrates what you want to do both personally and professionally is especially hard. So, where do you start?

It always begins with a budget. Since you have 8 months of history to work off of, the math is easy. Take your earning/sales and divide them by 8 then multiple by 12. Projections = (YTD numbers/8 months) times 12 months. I know this doesn’t take into account seasonality. So multiply by 13 to cover “extras” based on your spending habits.

From there, let’s look at next year. How much money do I expect to earn (sales/earnings)? How much do I want to keep (profits/savings)? This helps you back into expenses or “What can I spend?”. Works no matter what industry or household size you have.

The hard part is projecting how you are going to achieve the changes. For companies that are aware of their plans, projecting the top line is simpler. This includes scenarios of launching new products, expanding distribution, or raising prices. For the rest of us, historical growth or a modest growth rate is a good start.

Remember, strategic planning at its core is just math. The best ideas need to make sense when pen goes to paper, or excel. In my Strategic Marketing course at Rutgers, we spend 16 weeks exploring the different components of a business plan. Then we examine a strategic marketing plan, followed by a tactical marketing plan. This deep dive allows us to map scenarios and pivot.

Ironically, you have the same 16 weeks now before next year. Start your road map. Don’t know where to start? Contact me (jim@simplemgmtadcive.com). My team would love to work with you and help chart your company’s course.