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Business Planning

Why do I need a business plan?

A business plan is essential for three primary reasons:

It gives business owners a current assessment of the business as well as a roadmap for the future.
It helps a business grow, both organically and through outside funding.
It is essential to have an up to date business plan in order to secure financing, ranging from an overdraft facility or bank loan to venture capital funding.

A business plan is a tool for decision making - remember this and remember who it is written for - then design it to suit.

The business plan is a living document that should be continuously reviewed in light of the business environment and actual performance. This enables the directors to oversee business performance.

When to use outside help

For a business plan to be effective those who will have to implement it should own it. So, it cannot just be delegated to a consultant. But an experienced business planning consultant can add value to the process, whilst ensuring that ownership is in-house.

Objectives

The objectives of the business plan are first to develop and communicate a plan of action that will achieve the company's strategic objective. Then to provide a means of monitoring progress towards that objective and of stimulating alternative action if the objective is unlikely to be met by the original plan. These cannot be achieved unless the plan defines the strategic objective and includes benchmarks or performance measures at key stages during the year.

The planning process

The planning process is a valuable and exciting exercise that can be a major contributor to team building and a means of developing ownership/commitment to the plan. Involve people, it should end up as "our plan" not "their plan imposed on us". There are various exercises that can be helpful in the planning process:

Analysis of current year financial results
SWOT analysis - strengths, weaknesses, opportunities and threats
MOST analysis
Brainstorming - for alternative scenarios, opportunities, strategies
Profit & Loss and Cash flow forecasts

If the company provides different services or operates in different niche markets these exercises should be checked for each.

Find out more

We don't know when you will start your business planning process, whether you would just like to learn more about how we can help you or about our business planning consultants. You could contact us now.

Or, of course, you could do nothing.

The choice is yours.

"CSF Group Plc have grown to 200 staff across three UK locations and annual revenues in excess of £60m.

John Courtney and Strategy Consulting Ltd have advised CSF Group Plc for over four years. The various aspects that they advised on include:

* Advising the Chief Executive on the structure of the Group's Strategic Business Plan.
* Coaching Divisional Directors and Senior Managers in strategic thinking, analysis and decision-making. I personally use the methodology that he passed on to us to this day and recommend it whenever I can.
* Leading a successful two day workshop on Business Strategy for Directors and Senior Managers.

John's ongoing advice and assistance have been invaluable to both me and CSF Group Plc and accordingly I would like to highly recommend Strategy Consulting Ltd."

Mike Cohen
Joint Managing Director
CSF Group Plc