Business Planning

Business planning needn't be over complicated with lots of squiggly flowcharts! 

OK we’re finance directors so we would say that wouldn’t we but it is totally logical that a business should have a business plan as to how it will achieve its goals.

However it is surprising how many businesses do not plan properly, and by properly we are not suggesting rigid inflexible voluminous business plans and management reporting packages documents involving the destruction of rain forests that are so beloved by corporates that goes into the drawer once finished. We mean simple flexible documents supported by regular update reports that enable everybody in the business to understand where they are and highlight any changes that need to be made. So what can you do?

1. Review your existing business plan and budget or start preparing your new business plan and budget. If you don’t do business planning and budgeting now is the time to start - it is a good way to find out how well you really do know your business!

2. When preparing your business plan and budget test some scenarios e.g. sales down 5%, loss of certain customers - what would you need to do to survive in those circumstances?

3. An outside viewpoint on your business plan can often be invaluable even if you have to pay for it. Sometimes you can be too close to your business to be objective about it.

...and finally don't overcomplicate it! Squiggly flowcharts might look impressive but they probably won't increase the value of your business plan.