Profit Planning

Discussion in 'Growing and Managing a Business' started by businessampm.com, May 9, 2014.

  1. businessampm.com

    businessampm.com
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    Small business owner manager may prepare a profit plan well ahead of the financial year. For the purpose he should follow the step:

    1. Established profit goal for the period.
    2. Determine planned volume of sales.
    3. Estimate expenses for planned volume of sales
    4. Estimate estimated profit based on plans reached in 2 and 3.
    5. Determine how cost very with changes in sales volume.
    6. Determine how profits vary with changes in sales volume.
    7. Analyze his alternatives form a profit standpoint.
     
  2. marclewis

    marclewis
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    Profit planning means the development of operating plan for the coming period.
     
  3. SConsultant

    SConsultant
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    Disagree
    Why should someone start with determine the profit?
    Usually we measure the market first then try to maximize the profit via effective operation.
    The "planning" process above maybe suits to an individual sales organization - where the HQ tells you how much you have to add - for reverse planning.
     
  4. Aleena

    Aleena
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    Hi
    I believe it's really important to do planning as it will lead to success and above all we will get to know the weakness and positive side if a business.
     
  5. ecohomes

    ecohomes
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    I guess having the cash flow before starting the business it's important maybe that's why so many fail this days. Run into business they don't know and believe they can do it! Analysis, research and audit it's very important.
     
  6. anubhavsharma78

    anubhavsharma78
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    Profits are only possible by keep checking where you are going and where were you last time. The spontaneous progress is not possible you have to achieve steadil.
     
  7. piapetersson

    piapetersson
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    In my opinion what you plan is what you get. It's your future planning which determines profit or loss, so to think directly about profit is wrong first think analyze, plan about the path of profit and then earn it.
     
  8. DomexInfo

    DomexInfo
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    Hi, for any business to make profit we have know small, each and every information about that project or business. domexinfo.in help you to know that information about new and upcoming projects. Please visit once...

    Thanks and Regards.
     
  9. 60degreeDigital

    60degreeDigital
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    There should be a rescue plan or way out also, in case things dont go in an planned manner.
    Plan B should always be there.
     
  10. Kevin Peter

    Kevin Peter
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    Would estimated profit always remain the same? Any ways to sustain them and make sure there is an increase?
     
  11. navarromarillou

    navarromarillou
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    I disagree with that because profit planning is simply the development of your operating plan for the coming period. Your plan is summarized in the form of an income statement that serves as your sales and profit objective and your budget for cost.
     

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