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Toolkit for success: Time lines
 In
organizing or reorganizing a business enterprise, you set time lines.
"I've got to get the permit payment in by the third of the month,"
for example, or "My first year, I should clear $40,000."
The key to making time lines work, however, is to
write them down. This helps you visualize your goals -- and to see
how the steps you need to achieve success overlap each other in
a complex dance.
They will also become your very important notes for
projecting future operation needs and financial performance.
An example:
An entrepreneur starting a business determines office furniture
and equipment needs of $17,000. Sales of $130,000 and a net profit
of $15,000 are projected for the end of the first year. In the first
six months of the second year, sales of $85,000 and a net profit
of $9,000 are anticipated, allowing a second office to open in 18
months. To promote the second office, the entrepreneur plans an
advertising campaign two months before its scheduled opening.
The following time lines have been established:
1. Month 1
- Open first office
- $17,000 expense in office furniture and equipment
2. End of Month 12
- $130,000 in sales.
- $15,000 in net profit
3. Month 16
- Begin advertising in local newspapers
4. Month 18
5. End of Month 18
- $85,000 sales for first six months of year two
- $9,000 net profits for first six months of year
two
In organizing or reorganizing a business, the entrepreneur
is going to envision and commit to time lines. They will influence
marketing, operations and financial projections. In turn, time lines
will result in entries in financial statements -- and the resulting
ratios.
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