Thank you Tracy Houston of Board Resource Services www.linkedin.com/in/tracyehouston for sharing this with me this morning. I see more dynamic equilibrium these days with the CEO and the CFO. When I perform in the part-time CFO role, my customers expect me to help them move towards the unity in duality described below.

By PHILIP TULIMIERI And MOSHE BANAI

The chief executive as visionary leader is a thing of the past. It’s time to make room at the top for co-equals: leadership by the CEO and the chief financial officer—with equal authority and accountability.

CFOs have long labored in the shadows of their bosses, responsible mainly for such duties as overseeing the corporate treasury and attempting to rein in the excesses of their chief executives in the pursuit of growth. But distinctions between the two positions are blurring. We see changes afoot in corporate structures and society at large that already are driving a kind of merger of the two jobs.

At the start of this decade, billions of dollars were lost in a series of corporate scandals marked by fiscal mismanagement, fraud and outright greed on the parts of CEOs, CFOs and other senior executives. The public and legal backlash gave rise to new thinking about the ways companies should be organized, managed and governed, placing greater emphasis on accountability, regulation and transparency. New regulations were passed, including the Sarbanes-Oxley Act, which thrust the CFO into the forefront of the boardroom and helped create a new balance of power between CEO and CFO.

Optimist and Realist

As a result, the two positions, while maintaining distinct duties, have come to be seen as necessary counterforces in a company’s power structure: one, the eternal optimist pushing ahead at full speed; the other, the realist, urging caution and remaining wary of risk. The two must function as a team, addressing needs for both growth and responsibility.

Other forces elevating the importance of CFOs include globalization and offshoring, which have created a complex, and sometimes ill-defined, web of responsibilities atop corporations. There is also the decline in the role of chief operating officers, a trend that started when computers arrived and businesses began to apply IT to manufacturing, back office and logistics.

From the outside, meanwhile, pressure from governments, media and a globally connected community of consumers, shareholders and activists, are all pushing corporate leadership to operate with greater transparency, adherence to moral and ethical principles and accountability to stakeholders.

The top job has simply become too large, too complex and too demanding for one person. Thus, businesses are encouraging more of a consensus model of management in general. Younger employees are quite comfortable sharing roles, working in teams and nonhierarchical environments. They understand the concepts of teamwork and consensus management.

Critics may argue that two strong-willed people won’t be able to share such power, and that inevitable differences on strategy, growth and other issues will make timely decision-making impossible. But this argument fails to acknowledge the fundamental changes taking place in corporate management, or the principles of mutual respect and corporate pluralism on which young managers are being raised. A CEO-CFO partnership will provide the engine for this new-millennium corporation, and serve as a starting point for the new corporate model of ethical behavior, sustainability and true stakeholder value.

Continuous Communication

Equal sharing of responsibility for strategy and growth will require continuous communication between the two executives. Decisions made in partnership gain from additional perspective and expertise. Joint leadership can also draw on more energy to see a plan to its successful conclusion.

There is always the possibility of irreconcilable disagreements. But at many organizations with co-chairs or "co-leaders," appeals are made to a higher or independent authority who can break a deadlock. In a public company, a dispute can be put to a vote by the board or a subcommittee, which also can act as an arbitrator.

The concept of the "buck stops here," that one person shoulders the responsibility, and reaps most of the rewards, is fast becoming an anachronism.

–Dr. Tulimieri is a professor of management at the Zicklin School of Business, Baruch College, City University of New York, and a principal at the Capital Group, Pompton Plains, N.J. Dr. Banai is a professor of management at Baruch’s Zicklin School of Business. They can reached at reports@wsj.com.

I received this today. Its great that more companies are seeking growth opportunities.

Executives surveyed by McKinsey in late July expect their companies to remain financially cautious over the next 12 months, yet they also indicated they are actively seeking growth — and doing so in more ways than they were just six months earlier. Among specific actions companies might take in response to the crisis but haven’t yet, many more plan to introduce new products or services or to search for M&A opportunities than plan to start cost cutting or other defensive actions. This finding indicates both that most companies have cut costs already and that more are seeing opportunities.

Source: Economic Conditions Snapshot, August 2009: McKinsey Global Survey Results

Unlock capital, transform your bottom line and safeguard your future in uncertain times.

Tough times sometimes call for creative solutions. Mick McLoughlin, Global Head of Restructuring at KPMG and partner in the U.K. firm, says: “As the economy slows,[having more cash] could give businesses a competitive edge, so they may not have to do all the usual things firms do when they fear recession −slash R&D spend, trim marketing budgets, lay off staff. In tough times, companies that generate cash are well placed to acquire at bargain prices.” In fact, there are simple steps that produce simple gains. Take a look at eight factors to consider as you focus on cash.
Lead like Warren Buffett. Good cash management can uncover hidden process inefficiencies across the business, but if you don’t get buy-in from every department, you will only find out about problems when they become too obvious −and expensive −to ignore. Warren Buffett’s businesses generate cash because he has made this drive part of their corporate culture. And remember, how well you manage cash is partly driven by the caliber of information at your disposal.
Think like a private equity firm. Typically, private equity firms spend the first 100 days of an acquisition estimating how much cash they can generate without hurting the business −a strategy designed to improve working capital to grow the business’s value on a three to five year plan by tightening up on receivables or extending payment terms.
Choose your technology wisely. Treasury information systems help businesses draw on and study a wider range of data to forecast more accurately, improve financial reporting and make better decisions. But usability is key. If the system is so complex that your staff has to be reminded, cajoled and threatened to use it, you just waste money.
Learn the art of cash forecasting. Many companies turn to cash forecasting, but it is not a precise science because no company’s future can be foretold. Cash forecasting is more like a subtle art. But you can reduce the margin of error by making sure the appropriate stakeholders are engaged and held accountable for reviewing the accuracy of their inputs and documenting their assumptions.
Encourage brutal honesty. Cash forecasting correctly is hard enough. If staff feel obliged to manipulate data to fit head office preconceptions, it becomes impossible. Most staff members under-forecast, believing this to be cautious and appropriate, but if you’re too conservative you may fail to meet demand.
Supply chains can’t take all the strain. If you want to squeeze more cash out of your supply chain, don’t dictate terms and conditions to suppliers – instead, work with them. Putting the pressure on your suppliers could ultimately backfire by jeopardizing quality and production standards.
Less paper, more technology. Make the shift to electronic payments −they speed delivery of money and, by paying promptly and electronically, you should be able to negotiate lower prices with suppliers. In 2000, one U.K. business found it was missing the chance to bill for U.S. $2.75 million of sales a day because it was posting proofs of delivery to clients. It soon switched to electronic versions.
Stick with it. Cash flow management isn’t a short- term fix for firms at risk; it can be the discipline that drives the growing value of a business.

− David Tolson and Chris Younger Managing Directors, CapitalValue in Denver
Source: Excerpts from CapitalEyes Newsletter and  KPMG Advisory’s Agenda magazine.

Q:

I own a small manufacturer, around  $5M in sales. We do all accounting functions in-house on our accounting system except payroll which I have a service for. Our accountants are used only to do our tax returns at year end. The nagging question is: is there something else they could be doing for me? Apparently they have plenty of work to keep themselves busy year-round. But what are they doing that I should be tapping into?

Obviously, I could just ask but I want to go in with some prior knowledge before I do that.
1) What is your accountant doing for you besides taxes?
2) How often are you meeting with them?
3) Do they have direct access to your accounting system?

Whatever insights you could offer would be greatly appreciated.
John

A:

John, this is a great question. I find that many small/mid businesses use very little financial help in ways the can cause their business to grow successfully. I also find that CPAs see the world through tax glasses, which limits their perspective. Every day companies get great value from broader financial expertise. The part-time, contract CFO model is affordable for any size company. I have several $1M – $5M revenue businesses I work with regularly.

Most companies do not rely on their CPA to be proactive in providing strategic, senior level executive experience in management accounting, business, leadership and financial matters. Here’s why: Most CPAs in CPA firms have never been a senior executive CFO or divisional controller at any company. That’s quite different than having a CPA license with tax experience and an accounting degree.

I have seen hundreds of times where companies from $500K to $10M have used their CPA as their only trusted financial advisor for years. The company’s books are mostly setup with tax basis accounting methods, which is useful mostly for the tax people and not very useful to provide the CEO with management level information and decision-making.

I have to spend weeks and months working with the CPA and accountant to clean up the books and move them away from tax basis accounting to methods useful for tracking and running the business. When was the last time your CPA asked you to sit in your office and walk through the monthly financial reports with you, looking for problem areas and problem solving together? How often do you see your actual CPA, especially between the months of January and April? How many times have you been turned down for loans or lines of credit, and you weren’t really sure why? If the lender sees tax basis financial reports, what they can see is limited to, well, tax information. It requires extra work to glean business information from that.

The word “accountant” is so very general because there are so many different functions in accounting and financial management. Many people call these functions their “accountant”: CPA, Controller, Tax Preparer, Accounting Director, Staff Accountant, Bookkeeper, Data Entry Clerk, etc.  Some even call their CFO their accountant.

Independent CPAs and CPA firms need to maintain a certain distance from the day-to-day operations of their clients (thank Enron, MCI, etc.). There is a small percentage of CPAs and CPA firms that engage at a peer level with the CEO on a regular weekly, bi-weekly or monthly basis to perform financial management activities. But a true CFO offers these valuable activities including:
•    Producing timely and accurate financial reports
•    Cash flow analysis and planning
•    Profit improvement
•    Strategic planning
•    Increasing Sales
•    Funding and compliance
•    Exit strategies
•    Working capital and treasury management
•    Overseeing the accounting staff, CPA relationship, business lawyer relationship and
•    Financial modeling and what-if scenarios to make good business decisions

Most small businesses are not exposed to these things, or don’t know how to address problems in these areas. How can you tell if you need help? Call me. 303.995.4523

I hope this helps you get an idea of how the role of an affordable, part-time, contract CFO helps a company like yours grow and succeed.
Best wishes for a successful 2009!

What does this mean for small business?

Restoring the Small Business Administration to Cabinet-level status would be good for small business.

Raising the SBA to executive level status shows Americans that our government is interested in small business. Having the SBA “at the table” will invite much needed discourse resulting in a new understanding of decisions to be made. Impact analysis would be small business inclusive. That’s a good thing.  The move to Cabinet-level shows us that the government understands small business represents 99.7% of all employer companies. The move shows us the government realizes that small business is the engine of job growth in our economy. The fact is, small companies, not big companies, will play a leading role in our nation’s economic recovery.

Since 2001, the SBA has seen its budget fall 27%, the largest decrease of any federal agency during that time frame. Maybe this will change.

Many lenders find making SBA loans too complex, cumbersome and expensive. Sen. Snowe, who is working to convince Obama to put SBA to Cabinet-level, plans to introduce a bill that would reduce lending fees and train new SBA lenders on how to use these programs effectively. Among other things.

Wall Street has strong constituencies. Main Street should absolutely be represented in the Cabinet.

__________________

Below is a overview is article from bizjournals, but this one is way better: http://tinyurl.com/sbacabinetposition

Business First of Buffalo – by Kent Hoover Bizjournals.com

In order for an early stage or emerging company to raise money, it must provide investors with a set of financial projections.  Typically, companies will pull together a top-down P&L projection going out for three to five years.  I have learned from hard experience that this is wholly inadequate.  You will need either an awesome Executive Summary professionally produced, or a complete Business Plan which once the company starts executing, the plan becomes an Operating Plan. The development of financial projections is an interactive exercise with the me working alongside the entrepreneur, not created in a vacuum and thrown over the wall. My business planning work includes teaching the business owner(s) how to explain the financials and you get an understanding of fundamental financial terminology you can show potential investors and lenders.

I have developed a set of financial tools for comprehensive Business Plan financials, which embodies my 28 years experience and 2,500 combined years of my 100+ CFO partners’ experience.  I have designed and built such plans companies in all industries at all stages of business:

· Pre-funded, pre-revenue startups

· Funded, pre-revenue startups

· Hyper growth entrepreneurial companies

· Revenue generating companies that want to grow

My war chest of tools provide rapid development of custom Executive Summaries, Financial Models and Business Plans/Operating Plans which clients use to go get funded.

These are the financial elements of a Business Plan/Operating Plan suitable for presentation to investors, please see below.

• Revenue Model
• Department Budgets
• Expense Summary
• Fixed Assets
• Income Statement / P&L
• Cash Flow Projections

There are many reasons why a simple top-down P&L will not suffice for raising capital. Firstly, before contacting investors, the company should determine how much capital it needs to raise. A P&L projection can tell you the operating losses that you will need to fund, but it misses at least three other major items that consume cash, and it does not show any relation to what other companies in your industry are doing and have done. It does not properly reflect your purchases of equipment, software and other capital assets (a minor ongoing depreciation item in your P&L, but a lump-sum up front cash outflow). It ignores your accounts receivables (booked income as far as your P&L is concerned, but in reality cash that is NOT yet in your bank account). And it misses your inventory (not yet expensed in your P&L projection, but again an up front cash outflow).  In many cases the total amount of cash required to reach cash flow break-even can be two to three times the operating losses indicated in the P&L projections.

I include analysis of Industry benchmarks, which are included to validate assumptions, ratios, profitability, and financial ratios. These industry benchmarks are used as a starting point, and then the differences between the company and the industry are explained in detail.

Moreover, a P&L alone cannot answer a wide range of questions concerning the company’s business model and possible performance.  For instance, does the company consume more cash before reaching cash flow break-even by growing quickly or slowly?  How much cash needs to be raised to reach the first milestone at which the company’s riskiness (and therefore its cost of capital) drops sharply?  How many assets can be funded with inexpensive asset-based debt finance rather than expensive VC equity?  The answers to these and many other questions determine the optimum financing strategy to avoid unnecessary dilution of the founding team’s ownership percentage in the company.   They can only be answered by a thorough analysis of the P&L, Balance Sheet and Statement of Cash Flow.

For all of these reasons, it is critical that a startup develop a complete economic model of its business, a living, breathing set of interactive relationships modeled in a spreadsheet that behaves like the actual business and can be used for scenario generation, analysis and optimization.  This document is not just a pretty picture for investors, it is a hardcore Operating Plan with all of the gritty details of who, what and when.  Properly done, the management team can analyze and discard many alternative approaches to launching or growing the business, including testing different pricing schemes, distribution strategies, sales force models, support options, payment cycles, hiring plans and marketing budgets, to name just a few.

The output of such an Operating Plan is a set of P&L, Balance Sheet, and Cash Flow projections.  But standing behind these is a complete model of the business that provides the following benefits:

• • The entire management team knows exactly what each individual needs to do in each month of the plan.
  • The management team has a yardstick against which to measure execution.
  • The management team knows exactly how much cash it needs to raise to reach cash flow break-even, and how sensitive that number is to changes in key operating assumptions.
  • The Company has hard evidence to provide investors that it has thought through every aspect of execution.
  • The Company can strongly support the credibility of its projections by showing investors that its forecast is built from the bottom up, sale by sale, hire by hire, with all key assumptions clearly articulated.
  • The Company has a cash forecasting tool that can be adjusted for actual results to provide invaluable early warning of the need to start looking for another round of equity with time to raise it before running out of cash.

A savvy management team will have all of this in place before getting in front of investors.

REVENUE MODEL

The Revenue Model starts by defining the basic unit of sale, which might be a single product sale, a long term project, a subscription, a service transaction, or a customer relationship.  Whatever the unit is, the Revenue Model defines the economics of a single unit sale, and then builds revenues by generating multiple transactions across all product and service lines.  Revenues are generated by definable inputs, such as the number of salespeople hired times the average productivity per sales person, or the number of retail outlets carrying the product times the average units sold per outlet.

This granular bottoms-up approach builds real credibility for your projections.  It transforms arguments from investors along the lines of “We don’t think your revenue ramp is achievable” into conversations such as “Yeah, hiring one salesperson a month doesn’t seem unreasonable” and “Your projected revenue per salesperson is about industry average, and we like the way you don’t show any sales for the first six months after a new sales hire”.

DEPARTMENT BUDGETS

The Operating Plan includes a spreadsheet detailing expenses for each department in the enterprise.  Since most expense items are driven by headcount, a department budget starts with a section that tracks personnel and salary costs.  The second section then extrapolates an expense line for each expense item.  Expense items are generally defined to match exactly to the Company’s General Ledger account structure, so that historical data and future updates for actual results can be easily copied in.

Special expense categories such as rent, travel, outsourced Server Farm charges or Help Desk expenses are calculated in their own sub-models within the appropriate Department spreadsheet.  All variable expenses are ratio driven and tie to primary drivers, such as unit sales, total number of customers or headcount employed, which in turn are driven by the primary revenue assumptions so that all variable expenses shift up and down naturally with changes in revenue projections.  This approach ensures that the model behaves like a real business and can be used for accurate scenario generation and sensitivity analysis.

EXPENSE SUMMARY

The Operating Plan includes a spreadsheet called Expense Summary which summarizes total corporate expenses by Expense Item and also by Department.  This summary provides investors with a complete picture of how you intend to spend their cash.

INCOME STATEMENT

The Income Statement ties together the Revenue Model and the Expense Summary to create a P&L for the Company.  Since the expenses for certain Departments are split between Cost of Sale and SG&A categories, the Income Statement includes sophisticated checksums to ensure that no expenses are left unaccounted for.

BALANCE SHEET

Many entrepreneurs approach investors without a Balance Sheet in their projections because they figure that investors don’t really care about this aspect of their company.  Moreover, it’s very difficult to get a projected Balance Sheet to actually balance, so why bother?   The answer is simple.  You can’t get an accurate Statement of Cash Flow without a Balance Sheet, and EVERYONE cares about cash.

The Balance Sheet contains the critical assumption for the average number of days in the customer payment cycle, which in turn drives the amount of cash tied up in Accounts Receivables.  For product companies, the Balance Sheet also calculates the amount of cash tied up in the inventory needed to support the sales volumes from the Revenue Model.  And for all companies, the Balance Sheet draws in the cash consumed by the asset purchases indicated in the Fixed Asset Schedule.

STATEMENT OF CASH FLOW

The Statement of Cash Flow is the Queen of all financial statements. Sophisticated entrepreneurs and investors alike care most about this view. Entrepreneurs want to know how much cash they are going to have to raise to reach cash flow break-even. Investors want to know how much more money will be needed to support their initial investment, and, failing that, how much dilution they stand to absorb from follow-on investment.

The Statement of Cash Flow integrates cash consumed or generated from operating activities flowing in from the P&L with the cash consumed or generated by changes in Balance Sheet items such as Accounts Payable, Accounts Receivable, Inventory and Plant, Property & Equipment.

KEY RATIOS and ASSUMPTIONS

Investors want to see the story behind the numbers, and they need to see the rationale and assumptions the entrepreneur used to create the numbers. There are a lot of numbers in financial projections, some are derived, others are entered based on discussion with a competent CFO and documented thoroughly in the plan. Many entrepreneurs make the mistake of not including the thoughts, how they arrived at each of the numbers, and they often fail to prepare the backup material and assumptions that show the investor you have put some serious thought and work into your planning. Those that have not planned this way are seen as financially unsophisticated which leads investors to believe you probably are not the type of person in which they want to invest.

If you’re a typical small business owner, you spend more of your time working on today’s issues than tomorrow’s potential. That may keep the doors open for now, but what about when you’re ready to retire, or no longer have the will or energy to run your business?
As mid to large businesses grow, owners typically realize they’ll need to find a way out, but most small business owners do not have an exit strategy. Rather than simply selling inventory and closing the doors, the suggestion is that small business owners can increase their wealth by capitalizing on the goodwill or customer base they’ve built up. Here are some basic business practices that many entrepreneurs overlook, but can help keep the company buffed up and ready for the marketplace.
Key Business Practices:
1. Write down the business processes You can’t sell a business that is in your head. So, you need to write it down. Entrepreneurs don’t typically like dealing with details and the fine points, but you must document how everything works in your organization. For example, spell out the roles of management and employees, not titles, but their actual responsibilities. Or describe a typical customer visit. Franchise companies list these types of details; a small business owner can use the same tactics to show the value of their company to a potential buyer.
2. Set financial goals You cannot sell a business that is not making money. And, how do you know if you’re growing if you don’t know where you started and where you’re going? Once you’ve set some target goals, measure them on a regular basis. Look at the internal processes of your business and make sure they are still working for your customers and your company alike. You may be pleasing customers, but are you making money? Know what your return on investment is, so you can explain it to those interested in buying your company.
3. Have a marketing budget and plan Many small business owners don’t allocate money for marketing. A marketing plan, with a corresponding budget, is key to attracting and keeping customers. One rule of thumb is to spend the equivalent of one staff salary on your marketing and advertising. Think of it as your “silent” employee working 24/7. Market awareness of your brand and demonstrated customer loyalty can dramatically increase the value to potential purchasers. Marketing is the last thing you cut even if times are bad.
4. Keep track of customer information Often, the most valuable aspect of a business to a potential buyer is your customer list, especially if your potential buyer is a competitor. Keeping track of customer contact information including name, address, phone number and email (along with permission to contact them electronically) is a must. Being able to deliver customer profiles and buying habits to a new owner demonstrates how well your business is run and makes your customer list invaluable. If business owners don’t have customer data, they’ll be in trouble.
5. Keep employees in the loop Your staff represents your company to customers and buyers alike. Make sure they know your goals. Communicate with your employees and ask for ideas. They can help you dress the business up for sale. If you’ve decided to sell because the business is in trouble, let them know. It is unlikely to be a surprise and few things demoralize a staff more than having to rely on water cooler rumors. Try to avoid staff salary cuts if possible. Your people are the face of your business and a salary cut may backfire. Try looking at your business processes and finding ways to save money instead.
6. Get professional advice Identify the areas of your operation that need improvement and look for specialized help to simplify your processes. Make sure to test them before the potential buyer does. There are consulting professionals on a part-time basis who have knowledge implementing transition strategies for businesses and can help you, for a reduced fee.
So, don’t ignore one of the most vital elements of your business plan, the exit strategy. With careful planning and monitoring from day one, your last days of business can bring rich rewards.

How successful were you in 2008? Did you achieve your personal and business goals? If you are like the majority of busy people, you didn’t write your goals down. There are many reasons not to write our goals but unfortunately most of them are negative. Does this sound familiar?

o    · If I write down my goals and don’t achieve them, I have a constant reminder of failing.

o    · I like to be flexible, writing goals down puts limits on me.

o    · I don’t have time; I’m busy trying to get things done.

There have been studies done over the years that confirm writing your goals and looking at them regularly greatly increases your success in achieving them. What is interesting is that goal setting works both personally and in business environments. Many years ago I learned about goal setting and have used it religiously to help me move forward both personally and professionally.

Goal Setting

So what is goal setting? Goal setting is a process that helps you get clear on what you want, make an action plan to help you get there, launch into action, and persist until you reach your destination or find a better one.

Texas oil billionaire H.L. Hunt once said that there are only two ingredients necessary for success. The first is that you have to decide exactly what it is that you want. This is where he believed many stumble. They never decide what it is that they really want. They may think they want something from time to time, usually something generic and vague like “being rich” or “a better job,” but it’s just a fleeting thought; they never truly get clear on what these things really mean.

Hunt said that once you’ve decided what it is that you want, the second ingredient is to determine the price you have to pay to get what you want, and then resolve to pay that price by establishing your priorities and getting to work.

Many who get past the first ingredient never apply the second one. They don’t understand that you have to pay the price in full before you can claim your prize.

You can think of goal setting as a process that helps you to decide exactly what it is that you want, and then to systematically pay the price in order to get it. It is a process that helps you focus your time and energy on your targets through careful and deliberate planning.

SMART Goals

Another area where many of us stumble is understanding what a goal is and how to write it effectively. A goal is a well-defined target that gives you clarity, direction, motivation, and focus. It must include all of these criteria!

When identifying my goals, I like to use the SMART acronym. There are several variations but I have used the following successfully:

S -  Specific and Significant: Your goal statement should be very clear and specific as to what you want. This will facilitate the goal-seeking mechanism of the brain. Significant goals are the ones that will make a positive difference in your life.
M – Measurable and Motivational: There is an old saying that says “what gets measured gets done.” Making your goal measurable helps you see your progress, recognize if you are moving in the right direction, and see how far you still need to go. Goals need to be motivational. They need to inspire you to take action and make progress. One of the best ways to make goals motivational is to ask yourself why you want to achieve them.
A – Achievable and Action-oriented: Achievable doesn’t mean easy, just that you can have a reasonable expectation of achieving it. Action-oriented means your goal should focus on actions you can take that are in your direct control.
R – Realistic and Relevant: Realistic is another word for achievable. It means that the actions associated with your goal are things that you can do. Good goals are relevant to you and to your life. Relevant goals are meaningful and significant; they can make a difference in your life.
T – Time-bound and Trackable: For goals that have a natural ending (like outcome goals), establishing a clear deadline for them adds an element of urgency and motivation. All goals should be trackable so you can see what your progress is, either in terms of results you are experiencing, or actions you are taking.

From my experience, taking the time to complete this exercise has been invaluable. As a business owner, I used this format with my key employees to set both annual and quarterly goals. Writing them down is the first and most important step in the process. Reading them and internalizing every day helps to keep your mind focused on what is important.

Most of us have been exposed to goal setting during our careers. Unfortunately, what we know is common sense but not common practice. There is an old saying “Fail to plan, plan to fail.”