The environment in which we work is constantly changing, and running a business is becoming more and more challenging. Quite simply, planning significantly increases your chances of success. If you don’t have a business plan, now is a good time to plan for and think about the future of your business. Businesses do not plan to fail, however, many business fail because the owners have failed to think how their business will survive beyond the next month, focusing more on getting by on a day-to-day basis.
A business plan keeps everyone working towards common goals, rather than doing their own thing.
It helps you focus on what is important to business success, rather than trying to build a business by reacting to short-term whims or events.
It gives you the opportunity to identify potential problems in advance.
Also, a bank manager presented with an up-to-date business plan will not only be impressed by your management abilities, but can understand your financial needs properly and process the paperwork quickly.
There are really two types of business plans:
These cover the next 1-3 years and contain a detailed action plan for sales, production, human resources, finance, etc. The action plan should tie in with budgeted cash flows, projected profits, and investment in plant, debtors, and stock.
These cover 3 or more years. They spell out the direction of a business, and the key ways in which its aims will be achieved.
Short-Term (12-Month) Plan
Typical content of a 12-month plan includes:
Typical content of a 3-year plan includes:
With the short-term plan, you can monitor actual performance monthly, and by comparing it with actual performance you can identify any problems.
Action should then be taken to bring the business back on target. If adverse trends are detected, such as continuous shortfalls in sales, crises can be quickly averted.
Talk to us.
Once you are committed to developing a plan for your business we will be pleased to assist.
Remember, when the plan is finalised it will be up to you to use it effectively to get the best out of your business. However, we will always be on hand to help when needed.
A plan does not need to be complicated or require volumes of pages. A good start is to write down what you are doing, why you are doing it, and how you could do it better.
A plan can be written on the back of an envelope. The most important aspect of the plan is to start you thinking about how you are going to keep your business going and making money.
To assist you in meeting the necessary legal or financial requirements and if you consider that any of the issues contained in this fact sheet may affect you.
Important: This is not advice. Readers should not act solely on the basis of the material contained in this fact sheet which consists of general comments only and do not constitute or convey advice per se. Changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. We believe the contents to be true and accurate as at the date of writing but can give no assurances or warranty regarding the accuracy, currency or applicability of any of the contents.