The Prosperity Playbook: Planning for a Successful Family Business Succession

Predicting: What we expect to happen in the next three to six months.

income statement should be prepared on the accrual basis of accounting. By using accrual, you are matching the revenue of the period with the related costs for that period.

Technology costs, such as software licenses and technology support services

Gross margin percentage is calculated by taking the total gross margin and dividing it by sales.

Set a goal for the result of each project, and measure your progress toward the goal. The way you measure is relevant to the project chosen.

The main purpose of measuring anything is to focus your attention. Excess detail gives rise to lack of focus and negates the effectiveness of the information.

On a monthly basis, the following activities will take place:

The net-income goal is always set as a percentage of revenue.

Revenue, gross margin, and net income