Business Planning

Q: Everyone keeps telling me I need a business plan. Why do I need one and what should be in it?

A: Planning is essential in achieving success. A well drawn up business plan crystallises in your own mind the nature of the project/business and the timing of any required funding. It will be vital to any lending institution and they are unlikely to provide any assistance without a properly drawn up business plan.

The plan will include details of:

• The objectives and aims of the business.
• The purpose of the required funding.
• The business ownership and history.
• Management and responsibilities.
• Products and market share.
• Sales plan and strategy.
• The financial position of the company with detailed cash flow.
• Forecasts and past accounts.

For a more detailed fact sheet please email us.

Q: How do I monitor my performance against my business plan?

A: You will need to keep up to date and accurate financial records which tell you how your business performing on a monthly basis. Your financial forecasts should then be compared to the actual results so that you investigate why the results are different or to confirm that you have achieved the milestones. Identifying the differences is not as important as understanding the underlying reasons for them and then re-assessing your strategies. This is an important exercise to pick up those early warning signals. As your business develops you need to re-visit your business plan and forecasts so that they remain current and relevant.

Most accounting packages allow you to automatically compare actual results with budgets and the previous year to assist you in identifying variances.

If you would like to ask a specific question or request a more detailed fact sheet please email us.