Business planning

Planning for business performance and opportunities

Business planning is about two basic activities: budgeting and operational forecasts. They are both grounded in the business plan.

Business plans
Often we find these are the most overlooked. But they are very useful tools, and can make the difference between a forward thinking company and a business about to bust.

Preparing a business plan focuses the mind. Preparation helps one to set targets for performance, and benchmarks the monitoring of financial health.

We work with our clients to draft a business plan that immediately demonstrates the business essentials of the company or partnership. We scope out the resources needed: financing, staffing, contracts, operations, capital assets such as computer equipment and software packages, with the business owner.

Each activity, and business ambition, has a financial implication. We give guidance where necessary in what is absolutely essential and what is secondary, to long-term business success.

Business planning is about two basic activities: budgeting and operational forecasts.

 

Budgeting is essential for cash flow
Positive cash flow is essential for remaining in business. It’s certainly essential for getting to sleep at night.

Businesses are the brain-child of entrepreneurs: people investing in themselves, in their ideas, in their skills, in their resourcefulness and probably in their contacts database. Entrepreneurship and profitability are usually childhood mates. But for each to flourish, a positive cash flow is necessary.

There are unforeseen incidents that affect cash flow, no matter how we plan our business activity. We will help you ride out the toughest of times with timely analyses of the balance sheet and of out-flowing monies versus incoming payments.

Forecasting operational expenses and future growth
Operational expenses are anything from inescapable overheads — telecommunications, energy, staffing, vehicle leasing and fuel — to direct cost of sales or to cost of marketing, and particular project costs such as travel to client premises.

We can guide you on setting up reporting structures and making them work for you, giving you easy-to-use Excel templates and tools to help you.

Such forecasts are necessary when planning future growth. Knowing the business’s vulnerabilities as well as its strengths will help shape the way a company can respond to a growth opportunity, such as a strategic alliance or bidding for a local government contract.

 

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