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Business plan

Have you got one? How long since it was reviewed?

If you do not have a business plan, or if yours is out of date, it may be time to consider drafting a new business plan.

Benefits of Business Planning:

  • The process focuses the team on looking at future developments.
  • The process focuses the team on enhancing services to customers, which often results in profit improvement.
  • Staff involvement results in more effective implementation as they “own the ideas” and are therefore more willing to implement the plan. Morale often lifts due to this teamwork.
  • The process enables clear communication of business development direction and focus.
  • The process makes you stop and review the whole business (the ‘big picture’ in its entirety), rather than a ‘piece-meal’ approach of decision making forced by crisis.
  • A plan based on who will do what and by when creates an action orientation in the business.
  • Some practical suggestions regarding the preparation of a Business Plan: • Go through the process annually.
  • Involve staff.
  • Treat yourself to somewhere special to do it away from work (the ‘retreat’ concept).
  • Have staff and management put their thoughts down on paper before the meeting so that people are prepared.

Some practical suggestions regarding the preparation of a Business Plan:

  • Go through the process annually.
  • Involve staff.
  • Treat yourself to somewhere special to do it away from work (the ‘retreat’ concept).
  • Have staff and management put their thoughts down on paper before the meeting so that people are prepared.
  • Use a business plan questionnaire as a guide.
  • April/May is a good time to undertake a Business Planning Review.

Budget/Financial Projections

Incorporated in the business plan will be financial budgets (Budgeted Profit and Loss, Cash Flow and Balance Sheet). These budgets will usually be for a one year period with a longer 5 year plan available as a supplement. It is essential that all businesses have at least this component of the business plan. Now is the time to be preparing your 2011 Budget.