Today I had a long discussion with one of my clients who never managed to write a business plan and use it for control. Why the hack do you do your book keeping when not using it?

I try to convince the guy now for over a year to come to a meeting and plan his company - a business plan meeting is like playing in the sand box. You build up your plans till you find a way you want your company in one year from now and you document how you will reach this goal.

Because of this "playing" with your company’s numbers you get a better feeling where the money is coming from, which profit centre is bringing you the most profit. And you will find the activities that are eating up your profits.

So back to my client - it is now over a year ago that I first saw that his profits get less and less. SO I called him and told him it would be necessary to take a look at what he is doing - something is wrong.

But guess what his answer was? "I have no time for such a meeting - there is so much work i have to do in my company"

After a year of hard work (he still has so much work) and a year of calling him on a regular basis reminding him and telling him about his financial key figures- he is deep in debt. And I don't think he will manage to make a turn around.

Now you will ask me “why do you tell me this stuff”

I am always asked the same question by my client: "Why do you tell me about the financial stuff, I have so much work and my revenue is great"

I just want to remind you that revenue isn't the stuff that buys you your house or pays you your car - it is profit that counts - and you have to take time to do a planning and review of your finance otherwise you may end up in the same situation as my client - working hard every day - and in the end there is nothing left but a lot of debts.

So take out your time management tool and set an appointment for yourself when you will take your financial statements and review them and write a business plan for the next year. And don't forget to review your plan every 3 months - controlling if you are on track.