Creating a business plan

Copyright ©Nick Bettes Consulting www.nickbettes.co.uk

Workshop Programme

Business Planning


Agenda

• Feedback – actions you have taken

• Business surgery

• Workshop

– Business planning

• Implementation in your business


Course Overview and Positioning

MARKETING OPERATIONSSALES MONEY

SYSTEMISATION AND RESILIENCE

BUSINESS PLANNING

VALUE

BUSINESS DIRECTION

PEOPLE


Learning Objectives

• Workshop objectives

– To understand the benefits of having a business plan

– To understand the components of a business plan

– To learn how to develop a business plan


Why have a Business Plan?

• It’s a roadmap for your business

• It explains to potential lenders and investors how they will make a return



• It’s a roadmap for your business– Checks you are actually going to make some money -

shows income v costs and cash flow

– Identifies and validates assumptions

– Identifies and mitigates risks

– Identifies the required resources

– Turns your Vision, Mission and Strategic Objectives into action

– Communicates your aims and vision to your staff

– Keeps you on track – forms the basis of reviews



• It explains to potential lenders and investors how they will make a return

– The bank

– Friends & family

– Business angels and venture funds

– You!


What should be in a Business Plan?

• It tells a story

– Where you are going

– How you are going to get there

– Why you are bothering


What should be in a Business Plan?• Direction (aka strategy or purpose)• Market analysis• Sales forecasts• Operational assets & costs, productivity,

utilisation• People – structure, numbers, development• Money – budget and best/worst case• Key performance indicators & targets• For external use: Management team & required

funds


How do you create a Business Plan?

Income

Costs

Cash flow

Strategy

Marketing

Sales

Operations

People

Suppliers

Investment RisksAssump-

tions


How do you create a Business Plan?• The framework is financial...

– Sales income• Volume & price

– Market analysis, positioning, proposition, price, SWOT– Sales process & forecast

– Direct costs• Materials & labour

– Productivity, utilisation, service levels, supplier management

– Indirect costs• Marketing, sales, salaries, rent

– Profit– Cash flow forecast

• Terms and conditions, supplier management, credit control, working capital

• Sensitivity analysis


How do you create a Business Plan?• Use the financial framework to develop the

business plan “story”– Variance analysis

• Compare the figures with the previous year• Explain the differences (or similarities) by completing the

strategy, marketing, sales, people and operations sections• Identify KPIs and targets to match the financial targets

– Sensitivity analysis• Identify the factors that affect the net profit• What happens if all these factors go wrong (worst case) or go

better (best case)? What does this tell you about your base case?


How do you create a Business Plan?• SWOT

– Strengths and weaknesses• Internal - relate to your business, how capable it is and what

resources it has

– Opportunities and threats• External – relate to possible changes in the business

environment & market• Often split into Political, Economic, Social, Technological,

Legal, Environmental

• The point is what you do about the things it identifies– Actions in the Business Plan


Implementation in Your Business

• Suggestions

– Prepare a budget for your next financial year

– Incorporate this into your monthly management reviews

Creating a business plan

Business

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