Ian SmallwoodBusiness Manager

Let’s Do Business Group

Business Planning – What’s the point?So, just what is a Business Plan?What makes up a good business planWhat do I do with it now that I have one?

Do you know where you are going?Do you know where you are starting from?Do you know how you will get there?Do you know how long it will take you to get there?How will you know that you have arrived?What do you need to get there?Who is going to help you get there?How do you know if you are still on course?

A ROUTE MAP to where you want to be .

SpecificMeasurableAchievableRelevantTime bounded

Here, today, now,

What do I want to achieve?I want £1,000.000 a year turn overI want a new JagI want to employ 5 peopleI want be able to buy my own houseI want to be comfortable

I want to be comfortableIs it SPECIFIC?Is it MEASURABLE?Is it ACHIEVABLE?Is it RELEVANT?IS it TIME BOUNDED?

NO!

1 month1 year3 or 5 years10 years

SpecificMeasurableAchievableRelevantTime bounded

WordsFigures

Vision/Mission statementWhat the business doesWhat does the business want to achieveWho is involved and what do they do.Market/Customers/USP/CompetitorsCustomers/Route to marketFinanceSummary

Systems and processesPremisesLegal requirementsSuppliersRisk analysis

Why will people buy from you?What is different about you and your business that will make people buy from you?What is your compelling offer?How will you communicate this to potential customers?

Profit and loss forecastCashflow forecastBreak even forecastPersonal survival budgetSales/units forecastMust relate to the words

PROFIT AND LOSS ACCOUNT FORECAST/BREAK EVEN ANALYSIS For The Period: This normally summarises a 12 month period but can be less if you want Sales: (A) £ Less Direct (variable) costs: Materials/stock Direct Wages Other Total Direct Costs £ Gross Profit (Sales less Direct Costs) (B) £

Gross Profit Margin (GPM) (C) %

GPM = B/A X 100

Fixed Costs (Overhead): Wages/Salaries/NI Rent/Rates Heat/Light/Power Advertising Insurance Transport/Travel Telephone Stationery/Postage Repairs/Renewals Bank Charges & Interest Professional Fees Depreciation Total Fixed Costs (D) £ Net Profit (Gross Profit less Fixed Costs) £

Less Survival Income (E) £ Retained in Business £ Breakeven Turnover £ = (D + E) / C

CASHFLOW FORECAST – BUDGETED FIGURES

MONTH

Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast Actual Forecast

Sales - cash

Sales - debtors

Capital introduced

Grants & Loans

Other

Total (A) 0 0 0 0 0 0 0 0 0 0 0

Raw material/ PurchasesEmployee wages & NIRent

Rates

Heat, Light & PowerAdvertising

Insurance

Transport & packingTelephone

Stationery

Postages

Professional Fees

HP & lease pyts

RECEIPTS

PAYMENTS

Month 1Pre Start Period Month 5Month 4Month 3Month 2

Keep it closeReview performance regularlyReview objectives against performanceRewrite if necessary

This is your business and your business plan, write it for yourself.It is your framework for running your businessIt is your yardstick for judging the performance of your business.It is your Routemap to where you want to be.

Let’s Do Business GroupSummerfields Business centre

Bohemia Road Hastings

East Sussexwww.letsdobusinessgroup.co.uk