P&Ls or income statements. If you really have an uncontrollable burning desire to know, pro forma is Latin (nothing to do with Hispanics) for “as a matter of form” and is essentially an effort to model the anticipated result of a transaction or projection of future results. Let’s take a look at pro forma P&Ls for Bubba’s (See Figure 1). The title should indicate whether any of the columns reflect actual numbers rather than projections. You will notice that this template’s format breaks down sales among the various primary market segments, and the correspond- ing cost of sales is similarly delineated. If you are unable to provide a breakdown of cost of sales by segment, just provide a consolidated cost of sales. However, somewhere in the actual plan, you should provide more details about what you expect to sell by segment and the expected gross profit/margin for each. You should also pro- vide a breakdown of sales into categories by type of service and/ or products sales. It’s usually best to have spreadsheets (and hard copies) to demonstrate that you did not pull these projections out of thin air. Hint: It’s probably best not to suggest in writing that the source of these projected numbers is those voices in your head. Once you have established the underpinnings of your basic mar- keting plan, using the marketing mix and Four Ps approach, you need to begin developing specific objectives, strategies and action plans (tactics). In other words, specifically include a minimum of: What are you going to make happen? (Objectives) How are you going to make it happen? (Strategies) What specific steps will you take, when, by whom etc.? (Ac- tion plans/tactics) What resources will be required (budget, people, equipment)? What expectations do you anticipate, and how will these manifest themselves? This is where the rubber meets the road and you begin to walk the talk with specific steps and lots more details. But now you can go back and lean on the previous work that you did in answering those pesky marketing mix questions. It’s as if you just met your business savvy brother-in-law, you tell him about Bubba’s and he starts peppering you with sensible questions. Hint: Unqualified spouses and/or family members are prob- ably the worst possible source for meaningful, objective feed- back. Too oſten, relatives will tell you what you want to hear but not necessarily what you need to hear! Or they are well intended but not even remotely qualified. As you flesh out your plan, revisit that foundational stuff over and over. Keep asking yourself if what you are planning to do is consis- tent with your marketing mix foundation. This will help provide some guardrails to keep you from driſting off the path to success. WWW.ALOA.ORG Residential. Commercial. We have you covered. Great customer service | Quality products Same-day shipping | Competitive pricing Educational seminars Tel: (800) 225-7405 www.stoneandberg.com Fax: (800) 535-5625 Conclusion Hopefully, this discussion of marketing mix and the Four Ps will be helpful in constructing a strong foundation on which you can build your business. Then develop your specific objectives, strategies, ac- tion plans, budgets, plans, advertising and promotional collateral materials — and all the other stuff needed to lay out how you are going to make Bubba’s reach its ginormous, spectacular potential. Our next article in this series will be “Employee Performance Reviews,” where we will discuss the importance of doing such reviews in a timely manner. We’ll illustrate how to do them ef- ficiently and properly. Noel Flynn is a degreed business management con- sultant with global senior leadership experience, including more than 20 years in manufacturing, wholesale distribution and consulting sectors of the security industry. Noel has been a senior execu- tive, officer, board director and adviser to not-for- profit and for-profit companies in numerous industries worldwide. This includes being an ALOA board member since 2011, and he is also an ACE instructor, developing and teaching business management. APRIL 2020 KEYNOTES 21
