Learn the 7 Issues to Include in a Business Plan

Care should be taken to ensure a business plan includes all important data about the business.

What is important will vary from business to business, however, there are 7 topics that will most probably be included in a business plan.

Read 7 Topics for Inclusion in a Business Plan

Plan your Business Exit

Avoid being one of the troubled businesses that are predicted to fail in 2008.

The UK's leading accounting practices are expecting a significant increase in insolvency work in 2008. Fears exist that the credit crisis will cause many businesses to go bust with insolvencies expected to rise by 10%.

The head of KPMG restructuring advisory, stated ‘Companies have been kept alive artificially, but now they’ll be caught up.’

Read the report here.

Take steps now to avoid your business failing. Take control of your business, plan and most importantly manage the cash.

Succession Planning in Family Businesses

A report from PricewaterhouseCoopers finds that British family firms are failing to adequately plan for succession in their businesses.

Some 1454 family businesses from 28 countries were surveyed and only 30% of British family firms had chosen a successor compared with the international average of 50%.

Government policy, legislation and a shortage of senior skilled staff were identified as areas of concern by UK family businesses.

Read the report here and for further details on business planning and resolving the skill shortages visit DAW Consulting website.

Business Plans - Who Owns Them?

When setting out the business future or applying for funding it is usual to find support in the form of a business plan.

However, business plans are often not only found to contain omissions and mistakes that are easily avoidable, but also the business owner may not fully understand or appreciate the expectation placed on him/her to deliver the forecast results published in the business plan. If the document is for internal use then the fall-out of not achieving the forecast results may not be as grave as if the plan underpinned an application for funds.

The business adviser may prepare the plan, but the ownership of the business plan is not always understood to belong to the business owner.

Consequently, care should be taken when instructing the business adviser to ensure the business strategy set out in the plan can realistically be implemented and the forecast results achieved.

The business plan should be looked upon has a set of promises that the business owner can deliver and not a 'wish list' of opportunities that cannot be implemented.

It is, therefore, important for the business owner to understand all aspects of business and the adopt a 'will do' midset.

Learn more on Business Planning and Business Mentoring.

Business Plans and SWOT

Most business plans include a SWOT analysis, but what does SWOT stand for?

The acroym SWOT represents:

S Strengths
W Weaknesses
O Opportunities
T Threats

A SWOT analysis is a planning tool used by companies to identify the above features within their organisations. Its purpose is to critically assess the strengths, weaknesses, opportunities and threats in order to indentify and take action to eliminate areas of concern or extract further value.

A serious self assessment of the business should be regularly undertaken, otherwise the speed of change may overwhelm and place the business at risk. However, when preparing business plans the inclusion of a SWOT analysis will provide evidence to a potential investor of control within the business, that is knowing what is going on within the organisation.

For further help visit Business Planning.

Post Business Plan Preparation - What Next?

After you have prepared your business plan, what do you do with it?

Some business owners may file the business plan away, others correctly use it in the management of the business.

The purpose of the business plan is for it not only to be a 'live' document that is updated to reflect changes in the business, but also to be a target against which actual results (financial and non financial) are measured. If the business is well controlled any changes to the business plan should be minor and reflect on going operational changes in the business. Should a complete re-write of the plan be necessary, it may be indicative that controls within the business are inadequate.

Tips: Take control of your business, review your business plan regularly and update as necessary.

Financial Planning - Cost Reduction

If the call goes out to 'cut costs' for the next financial planning period , consider the impact that across the board cost reductions may have to achieving the strategic goals for the business.

Tip: Avoid cost reduction in strategically important resources. Consider long term as well as short term goals.