2015 Action Plan – Sage Wedding Pros’ Business Strategy for the Wedding Industry

Friends, it’s time!

It’s time to slow down a bit.

It’s time to reflect on 2014 and look forward to 2015.

It’s time for our annual (world famous!) 2015 Action Plan.

Ta-da….

Screen Shot 2014-11-20 at 8.05.32 PM

This is the 4th year of our action plan. We’ve made a few updates… but you’ll find that the majority of our action plan is the easy-peasy planning workbook that you’ve come to know and love.

THIS YEAR – we are introducing a word doc version to go along with the workbook. We know that some of you are ‘type-rs’… if you’re like me, you want to type out your action plan. Now, you can go through the exercises in a word doc. (We also have the pretty formatted version in PDF to guide you – and if you prefer to handwrite, this is all you will need.)

Here is the easy-peasy workbook + word doc supplement ($20):

 Add to Cart

And, here is the easy-peasy workbook + word doc supplement + spreadsheets, templates, downloads ($45):

 Add to Cart

ABOUT THE 2015 ACTION PLAN WORKBOOK…

The 2015 Action Plan is a 34-page book that will help you chart out the upcoming year.  (When you click to purchase, you’ll receive a file emailed to you with the workbook, etc.)  It includes everything to review 2014 and plan for 2015 in a tight little workbook:

  • SOUL-SEARCHING
  • GOAL-SETTING
  • MARKETING REVIEW
  • SALES REVIEW
  • OPERATIONS REVIEW
  • FINANCIAL REVIEW
  • MARKETING PLAN
  • OPERATIONS PLAN
  • FINANCIAL PLAN
  • Identifying Accomplishments

The workbook with downloads includes the workbook PLUS all templates and spreadsheets you need to work thru the plan if you don’t care to put together some of the spreadsheets yourself.  (They are sold separately in our Toolbox for a value of $57, but we are offering the bundle for $45.)

The downloads include:

  • Sage Wedding Pros – Tracking the ROI on your Ads and Other Promotional Activities ($10)
  • Sage Wedding Pros – Financial Review – Excel Spreadsheet – $5 (Profit & Loss Report SPREADSHEET)
  • Sage Wedding Pros – Pricing TEST & Sales Plan (how many weddings to make as a sales quota) ($10)
  • Sage Wedding Pros – Promotional Plan & Goal Sheet – $10
  • Sage Wedding Pros – Accounting 101 ($2)
  • Sage Wedding Pros – Expense Budget
  • Sage Wedding Pros – Expense Budget for start-ups (if applicable)
  • Sage Wedding Pros – Cash Flow Plan ($5)

Have a fantastic holiday season and a prosperous and healthy 2015!

PS – are you thinking of hiring employees in 2015? Make sure to check out The People Plan.

PPS – are you in need of a new business plan or business plan revamp? Make sure to join us at The Simple Plan.

 

Gifting Services to Clients Kills Your Profits

Last week, we talked about profit margins and how important it is to know how much profit you make on each event. This was something that Todd Fiscus shared at Biz Bash in Florida a couple weeks ago and I completely echo his sentiment. This knowledge is valuable and without knowing your cost budgets per event, you’re putting your business sustainability on the line.

Credit: www.flickr.com/photos/intelfreepress

Credit: www.flickr.com/photos/intelfreepress

Another concept that Todd talked about was the idea of ‘gifting services’ to clients… intentionally and unintentionally.

‘Gifting services’ is when…

  • you go-above-and-beyond without charging accordingly
  • you throw in extra time or product without being compensated
  • you go WAYYY above cost budget to show off your skill without invoicing the client

You know how it goes… the client hires you to design their event, or take their pictures, or shoot their wedding, or design their invites…

Scenario 1: you fall in love with the client and you want them to love you… you become their slave

OR

Scenario 2: your client hires you and you underbid their event… your brand is on the line and in order for your company to look good, you need to make up for their lack of budget

Any time that you go beyond your cost budget to gift the client (or show off in the name of your brand) you are putting your profitability on the line. This doesn’t mean that you ever cheap out, or do inadequate work. It doesn’t mean that you can’t give them an actual gift-gift for being your client. It means that you need to price your jobs accordingly so that you can do the best job for your client AND be profitable. You need to know what your price is for your services and you need to have that cost budget in place and stick to it.

What do you think about this idea of gifting clients on your services? Has this happened to you?

Event Profit Margins and Why You Need to Know Them

I had the pleasure of speaking at Biz Bash last week in Florida. I sat in on Todd Fiscus‘ Innovation Forum talk while I was there. He shared his thoughts on how to design events smarter.

Photo credit: Lending Memo - lendingmemo.com

Photo credit: Lending Memo – lendingmemo.com

Being the numbers girl that I am, I really perked up when he talked about event profitability… specifically managing your event budgets. I’m not talking about your client’s budget – tho it does apply. I’m talking about the budget that you have established for each event. You have that, right?

This is what I’m talking about…

client is paying you $20k to design their event
your cost budget for this event is $6k… meaning you have $6 to spend on materials, labor, etc.

If you track your profit and cost margins (and you should), you’ll know that a $20k wedding sale minus $6 k in costs, leaves you with $14k… or a 70% profit margin*. Nice!

You need to have a profit margin benchmark when preparing to service your client… this applies to you whether you are an event designer, or a photographer, or a filmmaker, or a stationer. If you’re a filmmaker, you need to know upfront how much money you have to work with when hiring a second shooter, when outsourcing to an editor for post-production. How much of a cost budget do you have to work with for a $5k job vs. a $10k job?

And… then… the trick is to manage that event’s cost budget… watch it closely. Being successful and profitable with events is so heavily reliant on that profit margin… the bigger the better. (We aren’t selling bulk widgets here at 10% margins… services need to have nice hefty margins.)

What’s a ‘good’ profit margin? Ahhh… it depends on so many factors: what you do, what you sell, who your clients are, what your overhead expenses are, how much you want to earn from your business. You need to find that profitability sweet spot that works with YOUR business model!

What are your thoughts on this? Have you seen this in your business? (Confused? Need help figuring out your profitability sweet spot? Shoot me an email and I can help: michelle@sageweddingpros.com .)

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*Profit Margin is calculated like this:
Gross Profit / Sales = Profit Margin %
or
Profit from one event / Sales Price = Profit Margin %

Are You Crying Over Your Taxes?

Ohhhhh friends and colleagues… this is a sad time of the year for most of us. Between February and April each year, we learn the fate of our relationship with the IRS. Most of us will owe money. And, if you had a particularly successful year, you may be surprised by how much money you owe.

This is me every single year:

Creative Commons: flickr.com (memekode)

Creative Commons: flickr.com (memekode)

It doesn’t matter how well I think I’ve planned, we always owe money.

OK… onward and upward… one thing you can do to NOT find yourself in this position in 2014:

Pay your taxes quarterly. Have your CPA help you figure this out, but a quick-n-sloppy way to estimate this is:

Look at the “net income” (the very bottom amount) on your “Profit & Loss Report” each quarter – send the IRS 30% of this amount. You will send in this amount using a little slip of paper called the 1040-ES.  (Note: this calcuation is a rough one at 30% because it doesn’t take into account your specific tax situation: do you own a home, are you an S-Corp? a corporation? But, this is a good place to start.)

Now, what if you have tax due that you really can’t afford for the 2013 year?  The IRS has installment agreements. It’s a pretty simple process that  most people are approved for. The pros are:

  • Tax debt in an IRS installment plan doesn’t count towards your ‘total debt’ on your credit report.
  • Interest and penalty rates are sometimes more favorable than some more expensive credit cards if you are facing having to charge your tax bill (you’ll have to go thru the math).
  • Generally the application allows you to input what you can afford to pay each month. (Don’t overpay 2013 if you aren’t able to pay quarterly for 2014. Better to pay off 2013 slowly and actively pay off 2014 incrementally, quarterly. You’ll owe more in interest, but you don’t want to face not being able to afford your 2014 bill next year.)

And, if you need a good giggle about doing your taxes (and/or another method of procrastination if you haven’t done them yet)… check this out.

 

Find Us at Alt Summit this Month!

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I’m so excited to share that I’ll be at Alt Summit this month in Salt Lake City! Alt is a fantastic conference for creative entrepreneurs and bloggers. I am honored to be a part of this incredible opportunity. (Go check out the other fab speakers… ever heard of a little site called Pinterest? Yeah, they’re speaking there!)

I’ll be sharing knowledge with attendees at “Ask an Accountant”. Come to me with your questions on finances, accounting, taxes, and so on. I’ll be sharing some of my favorite tips… and I’ll have some cool little freebies for you to take home and strategize your money matters.

Will you be there? Let me know in a comment below.

PS – don’t forget! Kelly is at The Special Event in Nashville this week. Go check out her talk on ‘How to Grow a Team‘ this Thursday morning.