Setting A Profit Target That Isn’t Fantasy
A realistic target starts from baseline, then adds one specific improvement lever.
Who This Is For
- You set targets that do not change behaviour.
- Your target is hope, not a plan.
- You want weekly actions linked to targets.
What To Do This Week
- Use last 3 months average profit as baseline.
- Pick one lever (price, discount, cost leak, efficiency).
- Turn it into one weekly action for 4 weeks.
FAQ
Monthly or quarterly targets?
Targets can be quarterly, but actions must be weekly.
What if profit is negative?
Your first target is stabilisation: stop leaks and control cash.
Percentage or dollar target?
Either works. The key is a matching weekly action plan.
What if revenue is unstable?
Protect margin and control costs first, then stabilise revenue.
What makes a target real?
A checklist and a weekly review routine.