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2022 Goal Setting: How to Make your New Years Resolutions Stick · Craft Brewery Financial Training Podcast

• 0:00
  Speaker 1: Just a quick note before we start today's podcast.
• 0:02
  Speaker 1: If you need a financial plan for your brewery, our online course, how to create a brewery profit plan might be just the thing for you in this course, we cover how to create your sales plan, your cost of good sold in margins, your operating expense plan, cash flow plan capital.
• 0:21
  Speaker 1: We cover debt service and other drivers of cash flow, such as accounts payable, accounts receivable in inventory.
• 0:28
  Speaker 1: And we present this information in very simple, straightforward ways with templates and models that you can download and use right away in your brewery business.
• 0:38
  Speaker 1: So if you want to check out the how to create a profit plan course, you can go to craft brewery, financial training.com and get all the details the course along with a dozen other courses on brewery financial training, operational training is included with your membership to craft brewery financial training.com.
• 0:59
  Speaker 1: And if you decide to join, you'll get access to me to ask questions, get guidance, provide feedback on your plan along the way.
• 1:07
  Speaker 1: So just head over to craft brewer, financial training.com to learn all the details.
• 1:11
  Speaker 1: And now please enjoy today's podcast.
• 1:15
  Speaker 1: Welcome to the craft brewery, financial training podcast, where we combine beer and numbers to provide you with tips, tax fixed and strategies so that you can improve financial results in your brewery.
• 1:26
  Speaker 1: I'm your host, Carrie Shumway, a CPA CFO for a brewery and a former CFO for a beer distributor.
• 1:32
  Speaker 1: I've spent the last 20 years using finance to improve financial results in our beer business.
• 1:38
  Speaker 1: Now I'm helping other craft breweries to do the same.
• 1:41
  Speaker 1: Are you ready to take brewery financial results to the next level?
• 1:45
  Speaker 1: Okay, let's get started.
• 1:51
  Speaker 1: Hello and welcome to the craft brewery financial training podcast.
• 1:54
  Speaker 1: My name is Carrie Shumway, and I will be your host today.
• 1:57
  Speaker 1: We are going to talk about new year's resolutions.
• 2:00
  Speaker 1: We're gonna talk about goal setting.
• 2:02
  Speaker 1: I wanna with you some systems, some models, some ideas, some techniques that you can use, and you can think about as you're setting those goals and resolutions.
• 2:13
  Speaker 1: So we're gonna look at these models.
• 2:17
  Speaker 1: Um, many of which we've heard of, but how do we pull these together?
• 2:20
  Speaker 1: How do we sort of use this framework?
• 2:23
  Speaker 1: So we've can, uh, create goals that will stick.
• 2:25
  Speaker 1: So we're gonna talk a bit about the business plan, the financial plan, SWOT analysis, using smart goals, uh, techniques on how to write things down, get'em on your calendar process versus outcome goals.
• 2:40
  Speaker 1: Um, and really using a system that I think is, is kind of a secret up, which is, which is called eliminate automate and delegate.
• 2:47
  Speaker 1: And I've borrowed that, uh, from Tim Ferris who has an excellent podcast.
• 2:53
  Speaker 1: And I definitely recommend anyone checking that out as well.
• 2:56
  Speaker 1: Tim Ferris show is fantastic.
• 2:58
  Speaker 1: So with that, we're gonna get into goal setting and new year's resolutions.
• 3:03
  Speaker 1: Please enjoy the podcast.
• 3:05
  Speaker 1: It is that time of year to set goals in new year's resolutions.
• 3:09
  Speaker 1: So let's get to it.
• 3:11
  Speaker 1: I am doing my goal setting and as I was doing this, I thought it might be useful to share the approach that I'm taking with you.
• 3:19
  Speaker 1: And this might be something you can try out in your beer business.
• 3:22
  Speaker 1: So the first step is really to do a past year review, look back on the year that was and identify the positives and negatives.
• 3:33
  Speaker 1: You know, what were some of the accomplishments?
• 3:35
  Speaker 1: What were the goals that you had set that you just never got started on, on, or fell short on?
• 3:41
  Speaker 1: Um, really just doing an assessment and the takeaway here is something I've borrowed, um, again from Tim Ferris and his goal setting technique.
• 3:51
  Speaker 1: And I'll link this video as to how to do kind of a, how he approaches his past year review.
• 3:56
  Speaker 1: But the takeaway is you wanna look at the things that you've done and try to identify those things that had the biggest impact.
• 4:02
  Speaker 1: So do that 80 20 analysis.
• 4:04
  Speaker 1: What are 20% of the things you did that created 80% of the positive outcome?
• 4:11
  Speaker 1: So that's step number one, just looking back on the past year.
• 4:14
  Speaker 1: Um, I like to look, you know, what, at certain key metrics, right?
• 4:18
  Speaker 1: You know, what was our sales plan?
• 4:19
  Speaker 1: Where did we come in?
• 4:21
  Speaker 1: What do we have for profit goals, cash flow goals, goals.
• 4:25
  Speaker 1: Where did we come in on those?
• 4:26
  Speaker 1: What were the, the driving factors, um, behind those?
• 4:30
  Speaker 1: So really just kind of looking back before we start to look forward.
• 4:34
  Speaker 1: So next as we look towards the new year, I think it's important to begin just with some self-reflection and trying to identify what the most important goals might be.
• 4:48
  Speaker 1: So rather than just kind of, you know, willynilly coming up with different goals, we wanna try to identify what's most important.
• 4:55
  Speaker 1: And I use this technique when I'm trying to determine key metrics, right?
• 4:59
  Speaker 1: Like what to track.
• 5:01
  Speaker 1: So how do we figure out what's most important?
• 5:03
  Speaker 1: We ask a couple of clarifying questions.
• 5:05
  Speaker 1: Number one is what is something that keeps me up at night in my business.
• 5:09
  Speaker 1: Number two, what is a big opportunity that I really, I know I should be taking care care of or taking advantage of.
• 5:17
  Speaker 1: Um, and the third question might be what's one big problem that I've been avoiding fixing in my business.
• 5:25
  Speaker 1: And another question might be what is one thing, um, that if I do that one thing it's gonna make other things easier or unnecessary.
• 5:35
  Speaker 1: So that is, uh, the concept of a book called the one thing by Gary Keller, another great read.
• 5:42
  Speaker 1: Um, but that's, it in a nutshell is, you know, try to identify those things or one thing that can make a really big difference.
• 5:48
  Speaker 1: And, you know, that could be things like a process change, um, within your business.
• 5:53
  Speaker 1: Maybe there's something that's just repeatedly, you know, causing a wasted time or, uh, issues, roadblocks, if you will.
• 6:01
  Speaker 1: So what's one thing, you know, sometimes it could be changing out your software.
• 6:06
  Speaker 1: You know, if you've got this software system that's just not working, you know, maybe bringing in something that's more efficient, uh, things of that nature.
• 6:13
  Speaker 1: So really step one, do the past year review, step two, as you're looking forward, let's look to identify what those most important things are and structure our goal setting around those.
• 6:24
  Speaker 1: So you can use those focusing questions, other basics to think about when you're setting your goals at its most basic level.
• 6:31
  Speaker 1: We want our goals in writing.
• 6:33
  Speaker 1: So we say, if you don't write it down, it did can count.
• 6:37
  Speaker 1: So you gotta get it in writing, you know, and as human beings, we don't always communicate well.
• 6:42
  Speaker 1: Particularly when we communicate verbally, we always hear different things.
• 6:47
  Speaker 1: We've got our own different perspectives, so we can make it easier on ourselves by getting it in writing.
• 6:54
  Speaker 1: So write it down as clearly as possible.
• 6:57
  Speaker 1: Well, next is to get it on the calendar.
• 6:59
  Speaker 1: So we get it in writing.
• 7:01
  Speaker 1: We clarify what our goals are.
• 7:03
  Speaker 1: Now we get a set aside time for it.
• 7:05
  Speaker 1: And I think this might be one of the, the simplest, but most effective ways to make sure that you stick with your goals is to put it on the calendar.
• 7:14
  Speaker 1: Literally schedule it out now.
• 7:16
  Speaker 1: So for example, if, if one of your goals is to do a monthly financial review and to do it every single month, you gotta schedule it now.
• 7:24
  Speaker 1: So maybe you wanna do that on the 10th of each month for the month prior.
• 7:28
  Speaker 1: So open up your calendar, whatever calendar system you're using and get it on there.
• 7:32
  Speaker 1: The 10th of every month from 8:00 AM to 9:30 AM, whatever your timeframe is, you're gonna that financial review.
• 7:39
  Speaker 1: And these are the people that need to be there.
• 7:42
  Speaker 1: So getting it on the calendar, you know, really nothing focuses the mind like a deadline, right?
• 7:47
  Speaker 1: So if it's not on the calendar, it's probably not gonna happen.
• 7:51
  Speaker 1: So we wanna get the good things on the calendar, the important things, otherwise they'll be crowded out by those day to day things, all that junk that kind of gets you nowhere, those emails and phone calls and meetings that just, they just happen.
• 8:04
  Speaker 1: So get it in writing, get it on the calendar you can use.
• 8:09
  Speaker 1: There's lots of good project management apps.
• 8:12
  Speaker 1: And you might think about'em as goal setting apps, but, uh, I've used base camp before.
• 8:17
  Speaker 1: That's very good.
• 8:19
  Speaker 1: Um, Google drive is obviously great for sharing information, but you gotta get the fundamentals, get it in writing and get it on the calendar.
• 8:27
  Speaker 1: Some other basics to think about as you're setting your goals are to think about your goals in terms of outcome goals and process goals.
• 8:33
  Speaker 1: So outcome goals are things that we want to accomplish.
• 8:36
  Speaker 1: Maybe it's sales growth, maybe it's cashflow growth, maybe it's opening up a new, uh, tap room location, or what have you.
• 8:44
  Speaker 1: Um, so those are outcome goals.
• 8:46
  Speaker 1: Things we want to achieve process goals are really those action oriented steps that we're gonna take that are gonna really underpin those outcome.
• 8:54
  Speaker 1: What are we, what are the things that we're gonna do?
• 8:57
  Speaker 1: What are the action items that we can take to achieve those outcome goals?
• 9:02
  Speaker 1: So they, they kind of go hand in hand, but very often we'll see goal setting as you wanna grow sales 10%.
• 9:08
  Speaker 1: And that's a great goal, but what are the things that are gonna support that goal?
• 9:12
  Speaker 1: So what are those process goals?
• 9:13
  Speaker 1: So consider list those out lastly on the basic side is identify the obstacles.
• 9:21
  Speaker 1: So it's one thing to identify the goals that we want to achieve.
• 9:24
  Speaker 1: We want sales growth of 10%, but it can be beneficial to identify what might be the obstacles that stand in the way of those goals and how might we come them?
• 9:35
  Speaker 1: How might we go over those obstacles or around them or through them?
• 9:39
  Speaker 1: Uh, so really thinking critically about, it's nice to set these goals, but if we've repeatedly run into the same roadblocks, you know, let's think about how we can, how we can get through those and how those might prevent us from getting where we want to get to.
• 9:54
  Speaker 1: So for a example, if it's a sales growth goal, and we know the obstacle is uncertainty in the market, you know, we just don't know if say on premise is gonna open up, like it was in 2019, or, you know, if we're gonna have more re we just don't know these things.
• 10:10
  Speaker 1: So we list out those obstacles and say, right, if these present themselves again, you know, what are some things that we can do, uh, to still achieve our sales goal?
• 10:21
  Speaker 1: And maybe some of those are just borrowing from the bag of tricks that we all learned in 2020, you know, with, with different revenue streams, with diversifying portfolios, uh, with finding new ways to market, uh, or it may be whole whole set of, of new ideas that you might come up with.
• 10:39
  Speaker 1: So identify those obstacles and list out contingency plants for what we might be able to do, not to overcome those.
• 10:49
  Speaker 1: So those are some basics next I wanna share with you, some frameworks that I use that might be useful for you to sort of organize your goal.
• 10:58
  Speaker 1: So we take those basic goal setting techniques, and then we want to dump'em into a framework so that we've got everything kind of nice, nice and tidy.
• 11:05
  Speaker 1: So the, the three models that I'll share, the three frameworks are the business plan, the financial plan, and a SWAT analysis.
• 11:13
  Speaker 1: So SWAT, you've probably done these, it's a strengths, weakness, opportunities, and threats.
• 11:19
  Speaker 1: So in your business plan, what I would suggest is if you have one, you know, pull it out, dust it off, see if it's still relevant, make updates where necessary.
• 11:30
  Speaker 1: If you don't have one, you know, now is a really good time to put one together.
• 11:34
  Speaker 1: I'm a big advocate of simple short one page, business plan, something that you can bang out within literally a couple of hours.
• 11:43
  Speaker 1: And then it can be a living document that you can update as you go, not something that you have to spend days and weeks on, and then maybe it sits in a drawer forever.
• 11:52
  Speaker 1: Never to be seen again.
• 11:54
  Speaker 1: So get the business plan out if you don't have one, uh, I do have a business plan course.
• 12:00
  Speaker 1: That'll walk you through the whole process.
• 12:03
  Speaker 1: It's very, uh, straightforward, very easy to follow.
• 12:07
  Speaker 1: Uh, so I'll link to that in the show notes.
• 12:08
  Speaker 1: If you wanna check that out as well, before I leave the business plan, the one, one thing I would suggest if you do nothing else with the plan is to look at what your core values are for your business.
• 12:20
  Speaker 1: Now, as a quote by, uh, Jason fried, he is the author of a book called rework, and he's also one of the founders of base camp, the project management app.
• 12:31
  Speaker 1: And he has a quote that says, if you don't don't know what you stand for, if you don't know what you stand for, everything becomes a debate.
• 12:38
  Speaker 1: And your core values really define what you stand for.
• 12:42
  Speaker 1: What's important to you, um, how you wanna operate your business and so forth.
• 12:48
  Speaker 1: And what I've found is if you don't know what you stand for, you're in these meetings and you're continuously having to decide and Reig and debate and negotiate, um, and it can be a real waste of time in money.
• 13:00
  Speaker 1: So if you can get clear on that for yourself, maybe for your, the, the folks that you work with, uh, that can save quite a bit of time.
• 13:07
  Speaker 1: So really looking at your core values, not just as a, a cultural thing that is important too.
• 13:14
  Speaker 1: It really is a decision making tool to help you save time and money into the new year.
• 13:18
  Speaker 1: So that's the business plan, take it out, dust it off, update it, get clear on your core values.
• 13:24
  Speaker 1: The financial plan is really essential and I am biased.
• 13:27
  Speaker 1: I'm a financial person, um, but really understanding what is our game plan for sales and margins, operating expenses, profitability, cashflow capital expenditures, and what is our plan relative to debt?
• 13:41
  Speaker 1: What's our financing strategy.
• 13:43
  Speaker 1: So it can seem like a lot of pieces, but really once you break it down, it can come together quickly.
• 13:50
  Speaker 1: And I do have a course on this as well, how to create your financial plan.
• 13:54
  Speaker 1: I will link to that as, as well, if you wanna check it out.
• 13:56
  Speaker 1: And there's also lots of other free resources, um, on, on the site that you can check out as well, if you just go in and search for financial plan, but it really just starts with what is a step by step approach to put each of these pieces together.
• 14:10
  Speaker 1: How do we take our goals and integrate them into the financial plan?
• 14:16
  Speaker 1: So very often the goals might be sales growth, say we want 10% sales growth.
• 14:21
  Speaker 1: Next year, we have a profitability say we want 15% profitability to the bottom line.
• 14:28
  Speaker 1: Um, integrating those goals, you know, quantifying, quantifying them and then putting'em into our financial plan and then having that written and accessible in a living document that we can update throughout the year, super important.
• 14:44
  Speaker 1: The last framework that you can use, or that I'll suggest here is the SWAT analysis S w O T strengths, weaknesses, opportunities, and threats.
• 14:53
  Speaker 1: Simply take a piece of paper, draw a line down the middle, uh, draw a line, uh, horizontal horizontally across.
• 15:00
  Speaker 1: You're basically just making a, a, a quad four quadrants.
• 15:04
  Speaker 1: So in your upper left, you'll have your strengths upper, right?
• 15:08
  Speaker 1: Is your weaknesses lower, left opportunities and lower, right?
• 15:13
  Speaker 1: Your threat.
• 15:14
  Speaker 1: So you just wanna list out strengths, you know, what are the things that we do well, weaknesses, the opposite opportunities?
• 15:20
  Speaker 1: What are the things that we can or should take advantage of and then threats, uh, what are problems?
• 15:25
  Speaker 1: What are gaps that we need to close?
• 15:28
  Speaker 1: Uh, where do we need to protect our flanks?
• 15:30
  Speaker 1: So I tend to be a risk averse individual.
• 15:34
  Speaker 1: So if you're gonna start with anything, you know, perhaps start with the T the threats, look in your lower right hand quadrant and list out what are the things that could potentially be problematic for our business, and how can we set goals right now, uh, to avoid those potential threats?
• 15:52
  Speaker 1: What, what could those be?
• 15:53
  Speaker 1: Maybe it's, um, registering, uh, for your intellectual property, right?
• 15:58
  Speaker 1: Trademarks for certain beer names or your brewery name.
• 16:02
  Speaker 1: If that hasn't been done yet, what are other threats?
• 16:05
  Speaker 1: It could be cash flow problems.
• 16:07
  Speaker 1: I always advocate for ready, access to cash and access to capital through a line of credit.
• 16:14
  Speaker 1: Maybe that's sitting down with your investors, sitting down with your banking partners and looking how you can shore up, uh, your cash protection coming up in the new year.
• 16:25
  Speaker 1: So that's a SWAT analysis.
• 16:26
  Speaker 1: So consider one are all of those frameworks.
• 16:28
  Speaker 1: They all do slightly different things.
• 16:31
  Speaker 1: Very helpful to have all three, um, the business plan, financial plan, and doing a SWOT analysis.
• 16:38
  Speaker 1: So I'm gonna wrap it up with some ideas on how you can make these things stick.
• 16:43
  Speaker 1: The first thing is to make your goals visible, really putting'em out there, and you can do this in any number of ways, but I recommend the scorecard really just a one pager.
• 16:54
  Speaker 1: Maybe we capture one to five goals on there, whether they're financial, operational customer service related.
• 17:03
  Speaker 1: So quantifying your goals, making them visible, sharing them with the people in your business that can make a real difference.
• 17:11
  Speaker 1: That's number one, that way it's always there.
• 17:14
  Speaker 1: We wanna update it regularly.
• 17:16
  Speaker 1: We wanna show people where we are relative to the goal, and preferably if we can do this on a monthly basis, then each month we reset how we doing this month, how we doing year to date, it's just like sort of a real time scoring.
• 17:29
  Speaker 1: So get the goals out there, make sure they're visible and communicate on a regular basis.
• 17:35
  Speaker 1: That'll help make it stick.
• 17:38
  Speaker 1: Next is to use a, what I'll call a secret weapon.
• 17:42
  Speaker 1: I've had great success with this.
• 17:44
  Speaker 1: I really enjoy this concept.
• 17:46
  Speaker 1: Again, borrowing from Tim Ferris uses, uh, this concept called eliminate automate and delegate.
• 17:52
  Speaker 1: So the things that come across your desk were the things that you're tasked with doing, to run them through this screening process and say, is this something that really needs to be done?
• 18:03
  Speaker 1: Can I eliminate it?
• 18:05
  Speaker 1: Cuz without scrutiny, we tend to just kind of do things or over and over again.
• 18:09
  Speaker 1: And we don't really test to see is this even needed?
• 18:12
  Speaker 1: You know, what value is this creating?
• 18:13
  Speaker 1: So question number one is, can I eliminate this next?
• 18:16
  Speaker 1: Is can I automate this?
• 18:18
  Speaker 1: We have so much access to technology.
• 18:21
  Speaker 1: Is there a report that I'm constantly running and then dumping to Excel and then I'm manipulating it and editing it and change.
• 18:27
  Speaker 1: Is there some way I can automate that?
• 18:29
  Speaker 1: because the answer is there probably is.
• 18:31
  Speaker 1: So think about where you're spending time and determine if technology can help you automate it.
• 18:38
  Speaker 1: And lastly is delegating it.
• 18:40
  Speaker 1: So this really goes back to highest and best use.
• 18:42
  Speaker 1: What are the things that you're doing and is it the highest and best use for your time or frankly, is someone else might be at it or better suited to it?
• 18:51
  Speaker 1: So can you delegate it?
• 18:53
  Speaker 1: So really thinking about that, maybe take a take an hour or a day or a week and just keep this in your head and think, can I eliminate automate or delegate these tasks that are coming across my desk?
• 19:05
  Speaker 1: And maybe that's a way to, to free up some time.
• 19:07
  Speaker 1: So you can really focus on those top level goals.
• 19:12
  Speaker 1: The last thing I'll leave you with is a quote from Zig Ziegler.
• 19:16
  Speaker 1: Um, he is, has some excellent ideas on goal setting.
• 19:21
  Speaker 1: And the quote that really stays with me is when he says each day, you might wanna ask yourself kind of do a quick of the day where as you're doing different tasks and ask the simple question, which is, is this moving me closer to or further away from my goals?
• 19:41
  Speaker 1: So if you're clear on your goals, you've got them in writing, you've got'em on the calendar, you've got them visible.
• 19:46
  Speaker 1: You've got them in some kind of a framework, whether it's business plan and financial plan, you can really assess each of the things that you're doing each day and throughout the day and determine is this aligned with my goals and use that question, you know, is this moving me closer to or further away from my goals?
• 20:05
  Speaker 1: So these are some of the things that I am working on and thinking about right now.
• 20:10
  Speaker 1: And hopefully there's something here you can borrow from to help you create great goals, great new year's resolutions to help you build a financially successful beer business into the new year into 2022.
• 20:25
  Speaker 1: So with that, I wish you all the best.
• 20:28
  Speaker 1: I wish you great cash, and I wish you a happy new year.
• 20:34
  Speaker 1: Thank you for listening to the craft brewery, financial training podcast, where we combine beer and numbers so that you can improve financial results in your brewery for more resources, tools, guides, and online courses, visit craft brewery, financial training.com.
• 20:49
  Speaker 1: And don't forget to sign up for the world, famous craft brewery, financial training newsletter until next time, get out there and improve financial results in your brewery today.