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Business Planning Papers:Developing a Strategic Plan

Page ContentsIntroduction to Strategic Planning1.

Key Steps towards a Strategic Plan2.

Use Hindsight when Strategic Planning3.

Effect not Equal to Cause when Planning Strategy4.

SWOTs - Keys to Business Strategies5.

Simple & Short Strategic Plans6.

Using the Strategic Planning Worksheet7.

Strategic Planning Worksheet8.

Introducing PlanWare9.

Copyright & Legal Stuff10.

Free Online StrategicPlanner

Free Online Strategic Planner for creating a 3-pagestrategic plan based on the structure used in this whitepaper. Use it to organize your thoughts, structure your

ideas and compile a short but comprehensive strategic planfor any size and type of organization.

Recommendation: Review the paper on this page beforeusing the planner.

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More InfoDevelop strategic planDevise businessstrategiesWrite strategic planSee planning surveysBuy planning bookView sample plan

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Strategic Plan Strategic Planning Business Strategy Strategic Planner Mission Statement Vision SWOTs Strategy Development

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1. Introduction to Strategic PlanningIf you don't know where your business is going, any road will get you there.

What is a Strategic Plan?

Entrepreneurs and business managers are often so preoccupied with immediateissues that they lose sight of their ultimate objectives. That's why a businessreview or preparation of a strategic plan is a virtual necessity. This may not bea recipe for success, but without it a business is much more likely to fail. Asound plan should:

Serve as a framework for decisions or for securing support/approval.●

Provide a basis for more detailed planning.●

Explain the business to others in order to inform, motivate & involve.●

Assist benchmarking & performance monitoring.●

Stimulate change and become building block for next plan.●

For inspiration (and a few smiles), have a look at some of the quotations andexamples of bad advice included in other pages!

A strategic plan should not be confused with a business plan. The former islikely to be a (very) short document whereas a business plan is usually a muchmore substantial and detailed document. A strategic plan can provide thefoundation and frame work for a business plan. For more information aboutbusiness plans, refer to How to Write a Business Plan, Insights into BusinessPlanning and Free-Plan: Business Plan Guide & Template.

A strategic plan is not the same thing as an operational plan. The formershould be visionary, conceptual and directional in contrast to an operationalplan which is likely to be shorter term, tactical, focused, implementable andmeasurable. As an example, compare the process of planning a vacation(where, when, duration, budget, who goes, how travel are all strategic issues)with the final preparations (tasks, deadlines, funding, weather, packing,transport and so on are all operational matters).

A satisfactory strategic plan must be realistic and attainable so as to allow



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managers and entrepreneurs to think strategically and act operationally - seeDevising Business Strategies for further insights.

Get Strategic Planning Help:Free Online Strategic Planner for creating a 3-page strategic plan.

See Also: Expert tools for Assessing Business Ideas (US$ 229.95)and Evaluating Marketing Strategies (US$ 795.00).

See a sample strategic plan - use the back button on your browser to return tothis page.

Need More Help with your Strategic Planning ? Havea look at:

Plan Write Expert Business Planner: Combinedbusiness plan tool and expert system to helpevaluate and develop your plan.

●

Quick Insight - Business Idea Assessor: Expertsystem to help evaluate and improve a newbusiness idea.

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Business Insight - Strategy Evaluator:Sophisticated expert system for evaluating,developing and comparing business and marketingstrategies.

●

Basic Approach to Strategic Planning

A critical review of past performance by the owners and management of a business and the preparationof a plan beyond normal budgetary horizons require a certain attitude of mind and predisposition. Someessential points which should to be observed during the review and planning process include thefollowing:

Relate to the medium term i.e. 2/4 years■

Be undertaken by owners/directors■

Focus on matters of strategic importance■

Be separated from day-to-day work■

Be realistic, detached and critical■

Distinguish between cause and effect■

Be reviewed periodically■




Be written down.■

As the precursor to developing a strategic plan, it is desirable to clearly identify the current status,objectives and strategies of an existing business or the latest thinking in respect of a new venture.Correctly defined, these can be used as the basis for a critical examination to probe existing orperceived Strengths, Weaknesses, Threats and Opportunities. This then leads to strategydevelopment covering the following issues discussed in more detail below:

Vision●

Mission●

Values●

Objectives●

Strategies●

Goals●

Programs●

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2. Key Steps towards a Strategic PlanThe preparation of a strategic plan is a multi-step process covering vision, mission, objectives, values,strategies, goals and programs. These are discussed below.

The Vision

The first step is to develop a realistic Vision for the business. This should be presented as apen picture of the business in three or more years time in terms of its likely physicalappearance, size, activities, structure, scale offerings etc. Answer the question: "if someonefrom Mars visited the business, what would they see (or sense)?" Consider its futureproducts, markets, customers, processes, location, staffing etc. Here is a great example of avision:

I will come to America, which is the country for me. Once there, I will becomethe greatest bodybuilder in history.......... I will go into movies as an actor,producer and eventually director. By the time I am 30 I will have starred infirst movie and I will be a millionaire...... I will collect houses, art andautomobiles. I will marry a glamorous and intelligent wife. By 32, I will havebeen invited to the White House. Attributed to Arnold Schwarzenegger whowas elected Governor of the State of California in 2003.

The Mission

The nature of a business is often expressed in terms of its Mission which indicates in a



factual way the purpose and activities of the business in terms of operations, (unique)characteristics, functions, customers, offerings, sectors/segments, scale/scope/penetration,methodologies, technologies, resources etc. Just answer the questions as to what thebusiness really is and does in qualitative terms. If planning for a startup, base the missionstatement on the business as it would be once operational - be realistic and practical ratherthan aspirational.

For example, "to design, develop, manufacture and market specific product lines for saleon the basis of certain features to meet the identified needs of specified customer groupsvia certain distribution channels in particular geographic areas". A statement along theselines indicates what the business is about and is infinitely clearer than saying, for instance,"we're in electronics" or worse still, "we are in business to make money" (assuming that thebusiness is not a mint !).

Also, some people confuse mission statements with value statements (see below) - theformer should be very hard-nosed while the latter can deal with 'softer' issues surroundingthe business. The following table contrasts hard and soft mission statements.

Hard Soft

What business is/doesPrimary products/servicesKey processes & technologiesMain customer groupsPrimary markets/segmentsPrincipal channels/outlets

Reason for existenceCompetitive advantagesUnique/distinctive featuresImportant philosophical/socialissuesImage, quality, style, standardsStakeholder concerns

Compare the following statements:

Hard Statement Soft StatementX Corp. designs, develops, assemblesand markets systems for data basemanagement. These systems integrateits proprietary operating systemsoftware with hardware supplied bymajor manufacturers, and are sold tosmall, medium and large-sizedcompanies for a range of businessapplications. Its systems aredistinguished by a sophisticatedoperating system, which permits usewithout trained data-processingpersonnel.

Our mission is to enhance ourcustomers' business by providing thevery highest quality products andservices possible. Our customer supportstrategy is based upon total,no-compromise customer satisfactionand we continually strive to offer acomplete package of up-to-date valueadded solutions to meet our customers'needs. We value above all our long termcustomer relations.



Intel's original plan, written on the back of a menu (view copy), is an excellent example ofa hard statement:

The company will engage in research, development, and manufacture andsales of integrated electronic structures to fulfill the needs of electronicsystems manufacturers. This will include thin films, thick films, semiconductordevices, and ......... A variety of processes will be established, both at alaboratory and production level ...... as well as the development andmanufacture of special processing and test equipment required to carry outthese processes. Products may include dioded transistors ....... Principalcustomers for these products are expected to be the manufacturers ofadvanced electronic systems ..... It is anticipated that many of these customerswill be located outside California.

If you'd prefer a soft statement, use the Dilbert Mission Statement Generator.

When drafting a mission statement, critically examine every noun, adjective and verb toensure that they are focused, realistic and justified.

The Values

The next element is to address the Values governing the operation of the business and itsconduct or relationships with society at large, customers, suppliers, employees, localcommunity and other stakeholders.

The Objectives

The third key element is to explicitly state the business's Objectives in terms of the resultsit needs/wants to achieve in the medium/long term. Aside from presumably indicating anecessity to achieve regular profits (expressed as return on shareholders' funds), objectivesshould relate to the expectations and requirements of all the major stakeholders, includingemployees, and should reflect the underlying reasons for running the business. Theseobjectives could cover growth, profitability, technology, offerings and markets.

The Strategies

Next are the Strategies - the rules and guidelines by which the mission, objectives etc. maybe achieved. They can cover the business as a whole including such matters asdiversification, organic growth, or acquisition plans, or they can relate to primary mattersin key functional areas, for example:

The company's internal cash flow will fund all future growth.❍

New products will progressively replace existing ones over the next 3 years.❍

All assembly work will be contracted out to lower the company's break-evenpoint.

❍



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Use SWOTs to help identify possible strategies by building on strengths, resolvingweaknesses, exploiting opportunities and avoiding threats.

For further discussion on strategies, refer to the paper on Devising Business Strategies aswell as these items below: Use Hindsight when Strategic Planning, Effect not Equal toCause when Planning Strategy and SWOTs - Keys to Business Strategies.

The Goals

Next come the Goals. These are specific interim or ultimate time-based measurements tobe achieved by implementing strategies in pursuit of the company's objectives, forexample, to achieve sales of $3m in three years time. Goals should be quantifiable,consistent, realistic and achievable. They can relate to factors like market (sizes andshares), products, finances, profitability, utilization, efficiency.

The Programs

The final elements are the Programs which set out the implementation plans for the keystrategies. These should cover resources, objectives, time-scales, deadlines, budgets andperformance targets.



It goes without saying that the mission, objectives, values, strategies and goals must be inter-linked andconsistent with each other. This is much easier said than done because many businesses which are setup with the clear objective of making their owners wealthy often lack strategies, realistic goals orconcise missions.

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3. Use Hindsight when Strategic PlanningStatements on vision, mission, objectives, values, strategies and goals are not just elements of futureplanning. They also provide benchmarks for a historic review. Most managers will find it exceedinglydifficult to develop a future strategy for a business without knowing its current strategies and measuringtheir success to date.

Assess Current Position

The starting point must be to determine a company's existing (implicit or explicit) vision, mission,objectives and strategies. Then judge these against actual performance along the following lines:

Is the current vision being realized?●

How has the company's mission and objectives changed over the past say, three years? Why havethe changes occurred or why have no changes occurred? Identify primary reasons and categorizethem as either internal or external.

●

Describe the actual strategies followed over the past few years in respect of products/services,operations, finance, marketing, technology, management etc.

●

Critically examine each strategy statement by reference to activities and actions in key functionalareas covering such matters as:

How has the company been managed?❍

How has the company been funded?❍

How has the company sought to increase sales and market share?❍

How have productivity/costs moved?❍

●

Take each element and quantify by reference to actual performance. Ask of each "why not"?, "whyonly"?, or "why so"? and locate the reasons for differences between the actual and desired performance.

Drill Down

A useful technique for exploring performance shortfalls is to review the business's financial return andto drill down through the components of this return to locate and assess the key determinants ofperformance. For example, return on shareholders' funds is a key measure of profitability which can beexpressed as:

Net income------------

SalesX

Sales-----------

Shareholders' funds

Take each item in this formula, explore its contents and derive performance measures or ratios. Forexample:



Sales break down into sales values, units, prices, discounts, commissions, bad debts and so on.

Net income is derived by deducting costs (materials, labor, power etc.), expenses, interest anddepreciation from sales revenue.

Shareholders' funds are based on the value of fixed assets, current assets, current liabilities, debtetc.

Use of cascading ratios is illustrated in thisDuPont-type profitability chart (click thumb opposite) which is automatically generated by morepowerful versions of Exl-Plan to show the impact of specific changes in key variables andassumptions on overall profitability.

Subject the resultant ratios to critical examination and attempt to compare them with industry norms.The paper entitled Managing Working Capital explains key working capital ratios.

Note that the Exl-Plan financial planners generate extensive ratios based on projected P&Ls, cashflowforecasts and balance sheets for 1-3-5-7 years ahead.

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4. Effect not Equal to Cause when PlanningStrategyWhen reviewing a business it is essential to cut through the symptoms of problems and reach theunderlying causes. Questions which can assist in revealing the real causes include the following:

"What stopped the business from?"●

"What caused the cause of?"●

"Why didn't the business achieve a 25% return?"●

By way of an example consider why this company may be unable to increase its market share:

Because it cannot penetrate major customers because its product range is too narrowbecause the company doesn't have the capability to produce additional products becauseof shortcomings in R & D because of a lack of expertise and resource because R & D is notan immediate priority because of a lack of profits because of a high interest burdenbecause the company is over-reliant on borrowings because the shareholders won't/can'traise additional permanent capital.



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The moral in this case is that there are no major customers due to under-capitalization !

Also have a look at the discussion on causes of business failure in Devising Business Strategies.

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5. SWOTs - Keys to Business StrategiesHaving built up a picture of the company's past aims and achievements, the all-important SWOT(strengths, weaknesses, opportunities and threats) analysis can commence.

Strengths & Weaknesses

Strengths and weaknesses are essentially internal to the organization and relate to matters concerningresources, programs and organization in key areas. These include:

Sales - marketing - distribution - promotion - support;●

Management - systems - expertise - resources;●

Operations - efficiency - capacity - processes;●

Products - services - quality - pricing - features - range -competitiveness;

●

Finances - resources - performance;●

R&D - effort - direction - resources;●

Costs - productivity - purchasing;●

Systems - organization - structures.●

If a startup is being planned, the strengths and weaknesses are related mainly to the promoter(s) - theirexperience, expertise and management abilities - rather than to the project.

Take a moment to complete or view the results of this survey.

Survey about Strengths & Weaknesses ofBusinesses

The objective is to build up a picture of the outstanding good and bad points, achievements and failuresand other critical features within the company.

Threats & Opportunities

The external threats and opportunities confronting a company, can exist or develop in the followingareas:



The company's own industry where structural changes may be occurring(Size and segmentation; growth patterns and maturity; established patterns and relationships,emergence/contraction of niches; international dimensions; relative attractiveness of segments)

●

The marketplace which may be altering due to economic or social factors (Customers;distribution channels; economic factors, social/demographic issues; political & environmentalfactors)

●

Competition which may be creating new threats or opportunities(Identities, performances, market shares, likely plans, aggressiveness, strengths & weaknesses)

●

New technologies which may be causing fundamental changes in products, processes, etc.(Substitute products, alternative solutions, shifting channels, cost savings etc.)

●

Against an uncertain and shifting background, the objective must be to identify and prioritize the keySWOTs in a one-handed manner (Don't say "on the one hand ...........but on the other hand.........").

Develop Business Strategies

Once the SWOT review is complete, the future strategy may be readily apparent or, as is more likely thecase, a series of strategies or combinations of tactics will suggest themselves. Use the SWOTs to helpidentify possible strategies as follows:

Build on strengths■

Resolve weaknesses■

Exploit opportunities■

Avoid threats■

The resulting strategies can then be filtered and moulded to form the basis of a realistic strategic plan -see also Devising Business Strategies for further insights into the development of strategies.

Need More Help with your Strategic Planning ? Have a look at:Plan Write Expert Business Planner: Combined business plan tool andexpert system to help evaluate and develop your plan.

●

Quick Insight - Business Idea Assessor: Expert system to help evaluateand improve a new business idea.

●

Business Insight - Strategy Evaluator: Sophisticated expert system forevaluating, developing and comparing business and marketingstrategies.

●

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6. Simple & Short Strategic PlansNotwithstanding that "battles are often lost for want of nails", a company rarely succeeds or fails forminor or trivial reasons. The causes are usually substantial and are often self-evident, at least to anoutsider. For example, the business was completely over-borrowed; management was weak; a majornew product opportunity was identified; legislation changed; a major competitor went bust or expanded;the company never reinvested.

It should be possible in the course of a few pages to set down the main elements of a business's vision,mission, values, objectives, goals, strategies, SWOTs etc. The compilation of a short report along theselines is likely to prove much more difficult than a lengthy dissertation which mixes up details andprinciples, and confuses the broad picture. See a sample strategic plan - use the back button on yourbrowser to return to this page.



Independent advisers or non-executive directors can play a valuable role in this process because theycan readily adopt the role of devil's advocate and also bring external knowledge and expertise to bear.The worksheet presented below may also assist.

For further information on business planning issues, refer to other papers in this series which coverbusiness ideas, business strategies, financial planning, cashflow forecasting and business planning.

Free Tools from PlanWareBusiness financial planner for high-level, integrated 2-yearprojections using Excel - details and download links forExl-Plan Free.

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Excel-based, comprehensive, rolling 6-month cash flowplanner - details and download links for Cashflow Plan Free.

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Business plan template & guidelines (Word format) - details &download link for Free-Plan.

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Online strategic planner for creating a 3-page strategic plan -details and sample plan.

●

More free tools here.●





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Need More Assistance? Have a look at:

Exl-Plan Multi-year Financial Projections (withExcel)Cashflow Plan Short-term Cashflow Forecasts (withExcel)Plan Write Comprehensive Business PlannerPlan Write Marketing PlannerPlan Write Expert Business PlannerQuick Insight Business Idea AssessorBusiness Insight Business Strategy Evaluator

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7. Using the Strategic Planning WorksheetWhen using the Strategic Planning Worksheet below, note the following suggestions:

Relate the planning exercise to a specific company or, if diversified, to individual strategicbusiness units.

1.

Ideally the worksheet should be compiled by a multi-discipline management group, or separatelyby 2/3 groups and then discussed in plenary session if a large business unit is involved.

2.

If working on your own, complete the worksheet and then return to it a few times over thefollowing few days and critically review what you wrote - why, why, why etc. and ask yourselfwhether you have seen the "wood for trees".

3.

A completed worksheet should be edited down into a 1-2 page document and reviewed by thegroup(s). The final form of the document need not follow the worksheet's layout provided all thematters are covered.

4.

All ideas, issues etc. should be internally consistent and realistic.5.

You need a very good understanding of the market, competitors etc. in order to make a clearassessment of your SWOTs. If you haven't got this insight, suspend work on your strategic planuntil you have done this basic research.

6.

Allow enough time as you may find it much more difficult to write a short plan than a long one!!!!

7.

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8. Strategic Planning WorksheetTo start using the worksheet below, copy the headings marked in red onto a blank sheet of paper (orpage in a word processor) and enter short statements about each item as per the guidelines above.

Note: This worksheet is available as a free Online StrategicPlanner. See sample strategic plan - you may wish to print it forreference purposes. (Use the back button on your browser toreturn to this page.)

Contents of the Strategic Plan

1. Assess the business's EXISTING strengths, weaknesses, threats and opportunities:(Strengths & Weaknesses are internal to the business and Opportunities & Threats areexternal. All SWOTs should be 'one-handed' - something is either a Strength or aWeakness but cannot be both. Enter up to six items under each heading and then rank themin order of importance. If you are planning a new business, consider the project's and itspromoters' existing SWOTs):

Internal Strengths

Internal Weaknesses

External Threats

External Opportunities

Take a moment to complete or view the results of thissurvey.

Survey about Strengths & Weaknessesof Businesses

2. Vision of business in 3/4 years time:(What will the business look like? If a visitor from Mars dropped in what would be seenand evident. Write in future tense. Maximum of 150 words)

3. Mission/purpose statement for business to cover next 3/4 years:(What will the business really, really be doing? What activities will it perform, where, howetc.? What makes the business special/competitive? Every noun, adjective and verb in thestatement is important and must be justified. Maximum of 150 words)




4. Statement of corporate values and beliefs:(Covers employees, customers, environment etc. etc. Maximum of 150 words)

5. Set out key long-term objectives:(These are the primary underlying reasons for being involved in the business, and are notspecific targets - these come later)

5a Shareholders

5b Management (If different from shareholders)

5c Business (Relative to competitors etc.)

6. Identify key strategies for business and major functional areas:(Build on strengths, resolve threats, exploit opportunities and avoid threats. Add any newdimensions revealed by Vision and Mission. List and prioritize up to ten or so majorstrategies. See Devising Business Strategies for further insights.)

7. Assess possible FUTURE strengths, weaknesses, threats and opportunities:(Do the foregoing strategies improve the initial SWOTs? If they don't, then they shouldhave done so)

Internal Strengths

Internal Weaknesses

External Threats

External Opportunities

8. Review your vision, mission, values and objectives:(Refine and revise/restate key strategies to deal with the perceived FUTURE SWOTs)

9. Specify major goals achievable over the next 3/4 years:(Quantify in terms of sales, market shares, finances, operations etc.)

10. Define strategic action programs:(Indicate who, what, where, when, how etc. Set targets and prioritize)

Note: This worksheet is available as a free Online Strategic Planner.

Next Steps in Developing a Strategic Plan

If you have prepared a strategic plan along the lines suggested above, you have several possiblepathways. These include the preparation of a full-blown business plan, compilation of financialprojections, undertaking market research, product development, management team-building etc. etc.You may also wish to refer to some other papers in this series which cover business ideas, businessstrategies, cashflow forecasting and managing working capital.



If preparing a business plan, look at Free-Plan. This is a free Business Plan Template for Word (48pages) and a complementary Guide (supplied as a 90+ topic Help file and as a 100+ page PDF file forprinting. Note that a strategic plan based on the structure in the Strategic Planning Worksheet (above) isideal for inclusion in edited form in Section 3. Strategic Overview of this Template.

If you need to produce financial projections as part of a strategic plan or for use on their own, take alook at our extensive range of Excel-based financial planners - Exl-Plan - which can be used to prepare3/5-year financial projections (P&Ls, cashflows, balance sheets, ratio analyses and graphs). Itincorporates a Quik-Plan facility for doing quick and dirty projections. If you seek a very simplesolution, look at Exl-Plan Basic (US$ 29) which generates comprehensive "high-level" 5-yearprojections based on annual assumptions (in contrast to the more detailed monthly and quarterlyassumptions used by other versions in the Exl-Plan range). Get the details and free trial downloads.

If you need to go into more detail with your strategic plan, have a look at the following software-basedexpert systems:

Plan Write Expert Business Planner: Combined business plan tool and expert system to helpevaluate and develop your plan.

●

Quick Insight - Business Idea Assessor: Expert system to help evaluate and improve a newbusiness idea.

●

Business Insight - Strategy Evaluator: Sophisticated expert system for evaluating, developing andcomparing business and marketing strategies.

●

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9. Introducing PlanWarePlanWare develops and sells a range of financial planning packages - Exl-Plan and Cashflow Plan - forbusinesses of all sizes & types. Trial versions of all products can be downloaded from our PlanWare siteand many other sources on the 'Net.

We also offer an extensive range of commercial software for writing business plans, market planning,assessing business ideas and evaluating strategies.

PlanWare also features:






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Business Ideas

Business Strategies

Strategic Plan

Business Plans



Cashflow Forecasts

Working Capital

Raising Finance


Papers on cashflow, financial, strategic and business planning topics.●

Advice on getting new business ideas, managing working capital, devising business strategiesand much more.

●

Pages devoted to famous business quotations and examples of bad business advice and mistakes.●

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Business Planning Papers:Devising Business Plan

Strategies

Page ContentsAvoid Business Failure1.

Characteristics of Successful Businesses2.

Clarify Existing Business Strategies3.

Look into Future SWOTs for Strategies4.

Basic Strategic Planning Approaches5.

Creating Strategic Combinations6.

Compiling Strategic Statements7.

Next Steps towards a Strategic Business Plan8.



Useful Links





Business Strategy: Strategic Business Plan & Strategy Planning with Strategic Planners, Strategic Plans, Mission Statements, Vision, SWOTs, Strategies, Strategy Development

http://www.planware.org/businessstrategies.htm (1 of 14) [30-05-2012 7:54:50 AM]































Free Online StrategicPlanner

Free Online Strategic Planner for creating a 3-pagestrategic plan based on the structure used in this white paper.

Use it to organize your thoughts, structure your ideas andcompile a short but comprehensive strategic plan for any size

and type of organization.

Recommendation: Review the paper on this page beforeusing the planner.

Click here to see feedback from past users of this planningtool (opens in a new window) and click here to see a sample

plan (use back button on browser to return to this page).

1. Avoid Business FailureThis paper is most relevant to entrepreneurs or management teams that have aclear vision and mission for their business and are in the process of developingthe primary strategies to be followed. It is closely linked to other papers in thisseries, most notably Developing a Strategic Business Plan which offers aframework for a strategic plan and Getting New Business Ideas. The developmentof a suite of strategies is an iterative process and involves circular thinking on thebasis that optimal strategies will evolve gradually and be very interdependent.Accordingly, the best way to utilize this paper is to review it in its entirety andthen use it as a checklist and basis for brainstorming and systematic analysis.

A venture is most prone to failure during its first three or so years of operation -the so-called 'valley of death'. A key to getting through these early years is toavoid the obvious mistakes. Generally speaking, businesses fail for significantand substantial reasons which are often very evident to outsiders. Insiders oftenfail to see them because of their closeness, determination and so on.

Basic reasons for failure include the following:

Finance Markets/Sales Management Offerings Operations





Underestimatingstart-up costs(for operations& capitalexpenditure).

Misjudging thesize or growthof the overallmarket.

Lack ofrelevantsectorialexperience.

Inability tosupplyprofitablyto requiredprice.

Under-investmentin equipment etc.

Insufficientfunds or accessto top-upfinance.

Overoptimisticestimates ofmarketpenetration &shares.

Insufficientfunctionalbreadth.

Problemswithmaintainingqualitystandards.

Excessiveoverheads(relative to scaleof operations).

Wrong mix offunds (e.g. toomuch debt andgearing toohigh).

Delays insecuring ordevelopingdistributionchannels.

Unresolveddifferences ofopinion.

Restrictedrange ofofferings.

High operationalcosts and/or lowproductivity.

Over reliance ontrade credit(receivables).

Underestimatingthe strength ofcompetitors.

Unrealexpectations.

Lack ofinnovation(me-tooofferings).

Poor capacityutilization.

Mistaking profitfor cash flow(see here).

Misreadingcustomerrequirements.

No formal orclearstructures.

Problemssourcingsupplies.

Inadequatephysicaldistribution.

Overoptimisticprojections orovertrading.

Lack ofpromotion &customerawareness.

Ineffectivefinancial &managerialcontrolsystems.

Offeringsout of linewithcustomerneeds.

Inappropriatebusiness location.

Unable towithstandinterest rateincreases.

Inability tohandle aneconomicslowdown.

Clearly, there are very many other reasons as to why businesses fail. The keypoint is that causes are usually very apparent (especially with hindsight) and thetrick is to anticipate them by executing appropriate strategies at the outset. Threeexamples:

Use market research to confirm demand and assess suitability of proposedofferings.

●

Create a management team to offset any gaps in experience or expertise.●

Raise equity to reduce exposure to interest rate changes, reduce gearing etc.●



Given that reasons for failure are often both simple and clear, it should (in theory)be possible to reduce the possibility of failure through prior experience,forethought and effective planning. Have a look at Quick Insight, an expertsoftware tool for assessing business proposals.

Top of Page

2. Characteristics of Successful BusinessesA successful emerging growth business is likely to display many of the following characteristics:

Sensibly financed (with prudent mix of equity and debt).1.

Strong cash position (with access to follow-on or contingency funds).2.

Offers above-average profitability (in terms of return on capital invested).3.

Aims for rapid growth in revenues (with profits lagging but in prospect).4.

Targets expanding, or otherwise attractive, market segments.5.

Develops a strong franchise or brand.6.

Devotes substantial resources to innovation (R&D, offerings or market).7.

Competes on non-price issues (e.g. quality, service, functionality).8.

Very close to customers and responsive to their needs.9.

Seeks specialist/leadership image with superior offerings.10.

Well managed with high-grade staff & good people-management.11.

Behind every characteristic there should be an explicit strategy designed to increase the chances ofsuccess and not simply aimed at reducing the likelihood of failure. For example:

A growth business needs a cash war chest and not merely "adequate" debt facilities.●

Likewise, its management team must have the capacity to manage the present business as well asits growth.

●

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3. Clarify Existing Business StrategiesIn planning new strategies for a business, it is essential to define its current (implicit or explicit)strategies for the business as a whole and its main functional areas - finance, marketing, sales,management, operations etc. Do this by setting out a series of short strategic statements. Someexamples:

The business has been financed entirely from retained profits and without recourse to debt orexternal equity.

●

The implicit sales strategy has been to offer a very broad range of products at premium prices andto invest heavily in promotion.

●

The senior management team has been drawn exclusively from family members.●

Instead of doing R&D, the business copies competing products and sells them at a discount.●

To get at the root (fundamental) strategies, critically examine each statement. For example:

How has the company really been funded?●

How has the company sought to increase sales and marketshare?

●

How have productivity/costs moved?●

Up to eight statements should suffice to cover all the essentials. Ask whether they contain the seeds forsignificant growth or merely represent hedges against possible failure.

Undertake separate analyses for each business unit if a large corporation is being appraised.

See Developing a Strategic Business Plan (Sections 1.3 & 1.4) and free Online Strategic Planner forfurther guidance.

Need more Help with your Strategic Plan ?Have a look at:

Plan Write Expert Business Planner: Combined business plan tool andexpert system to help evaluate and develop your plan.

●


●


●

Top of Page



4. Look into Future SWOTs for StrategiesAn effective SWOT (strengths, weaknesses, threats & opportunities) analysis is a key component ofstrategic development. It can prompt actions and responses:

Internal ExternalBuild on strengths Exploit opportunities

Resolve weaknesses Avoid threats

If the business is seeking significant growth, it is important to fast-forward and assess SWOTs as theymight exist a year or two hence. This will help ensure that strategies are ambitious and robust and thatemerging issues are anticipated.

Have a look at the discussion on SWOTs and related matters in Developing a Strategic Business Plan(and especially Sections 1.3 to 1.5).

Take a moment to complete or view the results of thesesurveys:

Survey about Strengths& Weaknesses of

Businesses

Survey aboutWriting a Business

Plan

Top of Page

5. Basic Strategic Planning ApproachesThe primary strategic options for a new or established business include the following:

Grow fast (and ahead of most competitors)Grow in line with industryDefend existing status (assumes a moderately strong startingposition)Catch up (with leaders & then grow with or ahead of them)Turn around (from being an underperformer)Hang in (go with the flow but don't expend much effort)Harvest (milk the opportunity with a view to withdrawal)

The preferred option is likely to be very influenced by the dynamics and prospects of the sector inwhich the business operates. For example, if the sector is under serious long-term threat then the onlyrealistic options might be to hang in or harvest.



The two main approaches to strategic development for an established business can be classified aseither organic or quantum as illustrated below:

Organic QuantumLower risk Higher risk

Limited resources neededSubstantial resourcesneeded

Absorbs less effortMay divert/deflectattention

Low immediate returns Higher returns (?)Incrementallearning/progress

Excellent insightsrequired

Strategic flexibility Unforgiving of errors

In the case of a start-up venture, organic and quantum approaches translate into soft or hard start-upstrategies. An example of a soft start would be a software company which evolves from a part-timebusiness into full-time service provider and then progresses into software products (classic "back room"start). Another example, would be an engineering company which starts in a shed and gradually movesinto a proper premises ("garage" start).

Soft start strategies can be very effective as they allow entrepreneurs to learn the trade (and makemistakes) without incurring major, irrevocable (and maybe premature) commitments. Hard starts areobligatory where substantial investments (in R&D, market or assets) or resources (technology,manpower etc.) are needed from the outset. It may be possible to soften a hard start by renting (ratherthan buying) premises; leasing equipment (instead of purchasing); acquiring a franchise (in lieu ofdeveloping a new brand, systems etc.); entering into a joint venture; or subcontracting manufacturing,distribution, accountancy services and so on.

Top of Page

6. Creating Strategic CombinationsThis Section presents several different combinations of strategies which could be used to help develop arange of strategic options. These can be strung together to form explicit strategic statements of intent.For example:

Any Inc's central objective is to become a full-line supplier. It will reduce its cost basethrough introducing new processes as result of licensing-in technology in parallel withbroadening its distribution activities financed by retained profits and external debt.

The purpose of this section is not to encourage a form of planning by words but to simply expose therange of possibilities that might be considered when formulating explicit strategies. These can beapplied equally to start-ups and established businesses. Of course, the big distinction is that the start-up



is building strategies from scratch without the benefits of any market position, momentum orpre-existing strategies.

Three software packages could be extremely useful in helping to formulate and assessstrategic proposals. Quick Insight is especially suitable for smaller businesses andBusiness Insight is aimed at larger businesses. Both packages are expert systemsincorporating the know-how of leading marketing and strategic planners. Theyevaluate proposals and allow users drill down to find the basis for evaluations and tocompare their strategies with those of competitors. The Plan Write Expert Editionintegrates Quick Insight into a comprehensive business plan writer.

Any selected suite of strategies must be integrated and internally consistent and in-line with thebusiness's broader vision, mission and objectives (see Developing a Strategic Business Plan). There islittle point in a business claiming to be technologically advanced if its R&D spend is sub-critical, oraspiring to become a leading brand if it has neither products, nor funds nor distribution to ensure thiscould happen.

Basic thrusts of a business (to be continued, deepened or initiated):

Basic Supplier ThrustsSpecialist vs. Full-lineMarket/price leader vs. Market/price followerProducts vs. SolutionsGoods vs. ServicesLow volumes vs. Mass productionCommodity offerings vs. High added-valueDifferentiated offerings vs. Me-too offeringsNiche markets vs. Broad segments

Primary product and market combinations include:

ExistingProducts New Products

ExistingMarkets Lowest risk Moderate risk

New Markets Moderate risk Highest risk

Investment possibilities include the following:

Improve market share, enhance brand, extend distributionIncrease capacity or efficiency or reduce costsExtend product ranges and/or served markets

Stabilize/strengthen financial positionInnovate and create new offerings



Increase skills or productivityScale back or close down

Possible future directions of main activities (Xs signify desired action):

ActivitiesDirection

Ignore Initiate Intensify Reduce WithdrawDistribution X - - - -Retail - - - - XServices - X - - -Manufacturing - - X - -

Alternative technology acquisition routes include:

Own R & DOwn D & no R

License inJoint venture

Co-finance/sponsor

Funding strategies could embrace the following sources and forms:

Sources Forms

Internal

RetentionsForego dividendsExisting shareholdersDisposal of surplus assetsSale & lease backBetter management of working capital (see here)

External

Debt (short- or long-term)Factoring & discountingSupplier/customer loans or advancesLeasing (operating & capital)Grants & subsidiesEquity (formal and informal venture capital)

The range of quantum leap possibilities could include:

License in/outFranchise

Trade investment



Minority/majority stakeJoint venture

Consortium membershipMerge/demerge

AcquisitionSponsor start-up

Top of Page

7. Compiling Strategic StatementsStrategic statements can be defined as broad indicators of the direction(s) in which a business should bedriven in order to fulfil its vision/mission while taking realistic account of its resources, constraints andopportunities.

Exl-Plan, our range of Excel-based financial planners, are ideal for exploringalternative funding options and related strategies and for undertakingsensitivity analyses.

They also serve as the link between the a business's objective and actions plans and should result in aseries of integrated sub-strategies and action programs with goals, budgets, timetables. These can bemost effective when linked to specific functional areas. For example:

Industry OperationsMarketplace Finance/fundingTechnology SalesOfferings ManagementMarketing Organization

Limit the number of strategic statements to what can be realistically achieved within a realistic timeframe and, if necessary, prioritize them. It is possible that just one strategy is needed for each of themain main functional areas listed above. See the latter parts of this Sample Strategic Plan for anexample of a set of strategic statements. It might help to summarize and sequence the key elements in acolor-coded Gantt chart or table like the following:

Quarter 1 2 3 4 5 6 7 8 9Strategy 1 Strategy 2 Strategy 3 Strategy 4 Strategy 5 Strategy 6



......

......

......

Need to Go Into More Detail with your Strategic Plan ?Have a look at:


●


●


●

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8. Next Steps towards a Strategic Business PlanOnce a set of strategies has been developed, it will almost certainly need detailed planning and realitytesting. This could embrace market research, acquisition scouting and all forms of planning rangingfrom investment appraisal through financial projections to business plans or corporate submissions.Useful software-related resources to assist these processes include:

Software for writing business and marketing plans - Plan Write Business Planner, MarketingPlanner and Expert Business Planner.

●

Software for appraising business proposals and marketing strategies - Quick Insight (smallerbusinesses) and Business Insight (larger businesses).

●

Financial planning software - Exl-Plan.●

Template for a business plan - Free-Plan.●

Online Strategic Planner for creating a 3-page plan.●

Need More Help?

Free Online Strategic Planner for creating a3-page strategic plan.

Also, the following white papers are central:






Getting New Business Ideas●

Developing a Strategic Business Plan●

Making Financial Projections●

How to Write a Business Plan●

Insights into Business Planning●

For a start-up, additional planning activities could include (in no particular order) management teamformation, R&D, market research and entry planning, feasibility studies and preliminary fund raising.


●


●


●


●


Be realistic about the rate at which a management team can implement strategic change and allow forthe fact that these may involve factors totally outside the business's control. It may be better toimplement a few strategic initiatives successfully and on time rather than a multitude badly or onlypartially. The solution here is to prioritize.














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Business Planning Papers:How to Write a Business Plan

Page ContentsWhy Write a Business Plan?1.

Start with a Business Strategy2.

Before Writing the Business Plan3.

Planning the Business Plan4.

Outline the Business Plan5.

Business Plan Outline6.

Writing the Business Plan7.



Need Financial Projections for Your Plan?

Use Exl-Plan for preparing comprehensive financialprojections for 1/3/5/7 years ahead. Ideal for a businessplan, strategic planning, cash flow forecasting, raisingfinance, budgeting and financial appraisals. Get fulldetails, download free or trial copies or buy & use now.

Useful Links

More InfoWrite business planGet planning insightsSee planning surveysGet free plannerSeek planning adviceDevelop strategic planChecklist for businessplanBusiness plan guide

See AlsoGet business ideasDevise businessstrategiesPrepare financialprojectionsWrite strategic planPlan to planBuy planning book

Software ToolsFinancial PlannerCashflow ForecasterBusiness PlannerExpert Business PlannerStrategy PlannerIdea AssessorMarketing PlannersFree Planners

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Business Plan: Writing Plans with Free Sample Template & Software, Business Planning, Business Planner, Business Plan Software, Business Plan Template, Sample Business Plan

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1. Why Write a Business Plan?The preparation of a written business plan is not the end-result of the planningprocess. The realization of that plan is the ultimate goal. However, the writingof the plan is an important intermediate stage - fail to plan can mean plan tofail. For an established business it demonstrates that careful consideration hasbeen given to the business's development, and for a startup it shows that theentrepreneur has done his or her homework.

Purpose of the Business Plan

A formal business plan is just as important for an established business,irrespective of its size, as it is for a startup. It serves four critical functions asfollows:

Helps management or an entrepreneur to clarify, focus and researchtheir business's or project's development and prospects.

●

Provides a considered and logical framework within which a businesscan develop and pursue business strategies over the next three to fiveyears.

●

Serves as a basis for discussion with third parties such as shareholders,agencies, banks, investors etc.

●

Offers a benchmark against which actual performance can be measuredand reviewed.

●

Financial ProjectionsCashflow ForecastsBusiness PlansMarketing PlansStrategic Plans

Just as no two businesses are alike, so also with business plans. As some issues in a plan will be morerelevant to some businesses than to others, it is important to tailor a plan's contents to suit individualcircumstances. Nonetheless, most plans follow a well-tried and tested structure and general advice onpreparing a plan is universally applicable.

A business plan should be a realistic view of the expectations and long-term objectives for anestablished business or new venture. It provides the framework within which it must operate and,ultimately, succeed or fail. For management or entrepreneurs seeking external support, the plan is themost important sales document that they are ever likely to produce as it could be the key to raisingfinance etc. Preparation of a comprehensive plan will not guarantee success in raising funds ormobilizing support, but lack of a sound plan will, almost certainly, ensure failure.

Importance of the Business Planning Process

Preparing a satisfactory business plan is a painful but essential exercise. The planning process forcesmanagers or entrepreneurs to understand more clearly what they want to achieve, and how and whenthey can do it. Even if no external support is needed, a business plan can play a vital role in helping toavoid mistakes or recognize hidden opportunities. It is much easier to fold a sheet of paper than a








business.

For many, many entrepreneurs and planners, the process of planning (thinking, discussing, researchingand analyzing) is just as, or even more, useful than the final plan. So, even if you don't need a formalplan, think carefully about going through the planning process. It could be enormously beneficial toyour business.

Anticipate many weeks of hard work and several drafts of the emerging plan to get the job right. Aclearly written and attractively packaged business plan will make it easier to interest possiblesupporters, investors etc. A well-prepared business plan will demonstrate that the managers orentrepreneurs know the business and that they have thought through its development in terms ofproducts, management, finances, and most importantly, markets and competition.

For more guidance on these matters, check the white paper offering Insights into Business Planning, theChecklist for Preparing a Business Plan, Free-Plan (free 150-page Business Plan Guide and Templatein Word format) and the comprehensive Business Plan Guide.

If you are developing, or have invented, a new product or service, it may be beneficial to start thebusiness planning process by reviewing the sections of Getting New Business Ideas covering AssessingIdeas and Next Steps. This will guide you on groundwork to be done before starting to write acomprehensive plan.

In the following sections, we discuss the preparation of a strategic plan and present ideas for preparingthe outline of a business plan and writing up the detail.

Need More Business Planning Help? Have a look at:

Exl-Plan Multi-year Financial Projections (withExcel)Plan Write Comprehensive Business PlannerPlan Write Expert Business Planner

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2. Start with a Business StrategyA short strategic plan (2-3 pages) can provide a very useful foundation on which to base a much moredetailed and comprehensive business plan. If you don't have a sensible strategic plan, how can yourealistically write a sensible business plan? Use a short strategic plan as the foundation for a morecomprehensive business plan.

As the prelude to developing a strategic plan, it is desirable to clearly identify the current status,objectives and strategies of an existing business or the latest thinking in respect of a new venture.Correctly defined, these can be used as the basis for a critical examination to probe existing orperceived strengths, weaknesses, threats and opportunities. This then leads to strategy developmentcovering the following issues which are discussed in more detail immediately below:

Vision■

Mission■

Objectives■

Values■

Strategies■

Goals■

Programs■



Vision

The first step is to develop a realistic Vision for the business. This should bepresented as a pen picture of the business in three or more years time in termsof its likely physical appearance, size, activities etc. Answer the question: "ifsomeone from Mars visited the business, what would they see or sense?"

Mission

The nature of a business is often expressed in terms of its Mission whichindicates the purposes of the business, for example, "to design, develop,manufacture and market specific product lines for sale on the basis of certainfeatures to meet the identified needs of specified customer groups via certain



distribution channels in particular geographic areas". A statement along theselines indicates what the business is about and is infinitely clearer than saying,for instance, "we're in electronics" or worse still, "we are in business to makemoney" (assuming that the business is not a mint !). Also, some peopleconfuse mission statements with value statements (see below) - the formershould be very hard-nosed while the latter can deal with 'softer' issuessurrounding the business.

Objectives

The third key element is to explicitly state the business's Objectives in termsof the results it needs/wants to achieve in the medium/long term. Aside frompresumably indicating a necessity to achieve regular profits (expressed asreturn on shareholders' funds), objectives should relate to the expectations andrequirements of all the major stakeholders, including employees, and shouldreflect the underlying reasons for running the business.

Values

The next element is to address the Values governing the operation of thebusiness and its conduct or relationships with society, customers, employeesetc.

Strategies

Next are the Strategies - the rules and guidelines by which the mission,objectives etc. may be achieved. They can cover the business as a wholeincluding such matters as diversification, organic growth, or acquisition plans,or they can relate to primary matters in key functional areas, for example:

The company's internal cash flow will fund all future growth.❍

New products will progressively replace existing ones over thenext 3 years.

❍

All assembly work will be contracted out to lower the company'sbreak-even point.

❍

Goals

Next are Goals. These are specific interim or ultimate time-basedmeasurements to be achieved by implementing strategies in pursuit of thecompany's objectives, for example, to achieve sales of $3m in three yearstime.



Programs

The final elements are the Programs which set out the implementation plansfor the key strategies.

It goes without saying that the mission, objectives, values, strategies and goals must be inter-linked andconsistent with each other. This is much easier said than done because many businesses which are setup with the clear objective of making their owners wealthy often lack strategies, realistic goals orconcise missions.

For more information on strategic planning, refer to other papers in this series entitled Developing aStrategic Business Plan (and its accompanying worksheet) and Devising Business Strategies, andconsider utilizing the free Online Strategic Planner. See also a sample strategic plan - you may wish toprint it for reference purposes.

Need More Assistance?Have a look at:

Exl-Plan Financial ProjectionsPlan Write Business PlannerPlan Write Marketing PlannerPlan Write Expert BusinessPlannerQuick Insight Business IdeaAssessorBusiness Insight StrategyEvaluator

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3. Before Writing the Business PlanThis section deals with preparatory issues, structure & content, and length & time scale for thepreparation of a detailed plan.

Preparatory Business Planning Issues

Before any detailed work commences on writing a comprehensive business plan, you should:

Clearly define the target audience●





Determine its requirements in relation to the contents and levels of detail●

Map out the plan's structure (contents page)●

Decide on the likely length of the plan●

Identify all the main issues to be addressed.●

Shortcomings in the concept and gaps in supporting evidence and proposals need to be clearlyidentified. This will facilitate an assessment of research to be undertaken before any draftingcommences. Bear in mind that a business plan should be the end result of a careful and extensiveresearch and development project which must be completed before any serious writing of a plan shouldbe started. Under no circumstances should you start writing a plan before all the key issues have beencrystallized and addressed.

To get started, use the outline below to prepare the basis for your plan. Bear in mind that if a credibleand acceptable outline plan cannot be compiled then it is highly improbable that a more comprehensiveplan can be prepared.



Businesses


Plan

For further practical guidance on these matters, review the following:

White paper offering Insights into Business Planning.1.

Checklist for Preparing a Business Plan.2.

Free-Plan - business plan template & guidelines (Word format).3.

Comprehensive Business Plan Guide.4.

Structure & Content of a Business Plan

A typical business plan comprises the following main elements:

Brief Introduction setting out the background and structure of the plan.1.

Summary of a few pages which highlights the main issues and proposals.2.

Main Body containing chapters broken into numbered sections and subsections.3.

Appendices containing tables, detailed information, exhibits, etc. referred to in thetext.

4.

The outline presented below in conjunction with the comprehensive Business Plan Guide could serve asthe basis for a detailed business plan.




Length & Time-scale for Business Planning

Whilst the sheer length of a business plan may bear no relation to the underlying prospects of abusiness, it is likely that a well-developed plan would be at least twenty pages long plus appendices.

The elapsed time needed to produce a detailed plan might be between twenty and one hundred days.This would be determined not only by the complexity and scale of the venture, but also by the scale andmaturity of the business and relevant experience and skills of the management team. Whilst the task ofwriting the plan itself may only take a relatively short time, be sure to allocate enough time to theresearch, preparatory work and the underlying thinking and discussion.

For more guidance on the length of a plan and the time-scale involved, have a look at Insights intoBusiness Planning.

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4. Planning the Business Plan

Develop an Outline Business Plan

Start by defining an outline (i.e. a table of contents) of your plan. This will allow you to to concentrateon the essentials of planning the business rather than becoming too absorbed in the detailed drafting ofyour plan. It will allow you to see the wood from the trees.

Having devised the basic outline for your business plan, the next task is to expand this to includesubheadings and appendix titles (see the Business Plan Guide for detailed suggestions). This extendedstructure should be critically reviewed to ensure that all the salient elements of the plan are included andthat it has a logical flow. This approach should also ensure that the plan has an appropriate levels ofdetail and is correctly targeted at its audience - investors, directors/shareholders, financial institutionsetc. For example, a structure which is mainly devoted to detailed technical descriptions of productswould be completely unsuited to a plan being used to raise bank finance.

Prepare a Business Planning Work Program

Once the plan's structure has been defined, it can be used as a checklist and basis for a work programand timetable to complete the plan. This work program will often entail extensive research and thoughtprior to the commencement of writing. For example, formal market research may be needed beforesales volumes and prices can be determined. Another example: professional advice may be required toassess capital expenditures in relation to the acquisition of premises and so on.

The work program could correspond to key sections of the proposed plan and could include timetables,resource allocations and cost estimates as indicated in the following chart:



Section ofPlan Researched by Written by Elapsed time

(weeks)Cost($) Priority Key Actions

Further Suggestions for Business Planning

Some additional tips and suggestions:

Be absolutely clear about the primary purpose and audience of the plan from the outset. If theplan has to serve multiple purposes, consider producing tailored versions (or tailored summaries).

●

Allow enough time to produce revised drafts of the plan - three/five drafts would not be unusual.●

Write the Introduction, Summary and Conclusion of the plan only after the plan's main parts havebeen finalized.

●

At an early stage, make some high-level sales and financial projections (covering 1-3 years) toexplore the general direction and size of the business, likely viability and possible fundingamounts and mix. For this purpose, consider using the Quik-Plan facility within Exl-Plan, ourrange of financial planners for use with Excel.

●

If the elapsed time needed to prepare the plan and commence its execution is lengthy, set the startdate for financial projection close to the commencement of execution. For example, if you beginpreparing a plan in January and hope to raise startup finance by October, the start date forprojections might be set to September. Any expenses incurred before this date could be rolled upinto the opening balance sheet for the projections.

●

Seek external assistance sooner rather than later. This may take the form of software tools,consultancy assistance in the form of specific assignments, or mentoring and counseling on an asrequired basis.

●

If planning a significant business, ensure that a management team has been identified (andpossibly in place) before the plan is finalized.

●

Identify and cultivate possible key recipients of the plan during the plan's preparation. This willensure that when the plan is finally presented, these contacts will have some prior knowledge ofits contents and the promoters and, where appropriate, the views of contacts may have been takeninto account during the preparation process.

●

Start compiling the plan at the sections devoted to market research/analysis and salesforecasts/plans, or with details of the proposed product/service offerings. Leave the detailedfinancial projections aside until all details in relation to sales, costs, expenses, operations, capitalinvestment and possible sources/types of finance have been resolved

●

For further help, check out:



The white paper entitled Insights into Business Planning which has been based on the views ofhundreds of people who have prepared business plans

●

Free-Plan, our free Business Plan Guide and Template (for Word)●

The 30-point Checklist for Preparing a Business Plan.●

The comprehensive Business Plan Guide.●

If you have a problem or query relating to the compilation of a business plan which is not covered in thevarious white papers, you may wish to use our free and confidential Online Business Plan AdviceService.


Exl-Plan FinancialProjectionsPlan Write Business PlannerPlan Write Expert BusinessPlanner

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5. Outline the Business PlanThe next section presents an outline structure for a business plan. Feel free to change this outline to suityour project and its state of development. It can be readily expanded to become a 'full-blown' businessplan by extending the level of detail as explained in the Business Plan Guide.

Note: A free 150-page Business Plan Guide andTemplate (Word format) incorporating a similaroutline structure and additional detail is available fordownloading here.

The suggested page lengths for a comprehensive plan are given in parenthesis after each section'sheading within the outline. A small, straightforward business should work within the minimum pagelengths whereas a large, complex business seeking a substantial external investment might hit themaximum page lengths. Note the importance of marketing and sales in terms of the suggested numberof pages for these sections. For more guidance on the length of business plans, have a look at Insightsinto Business Planning.





Avoid going into too much detail within the plan's body by placing detailed or supplementary materialin accompanying appendices. Bear in mind that most investors, bankers etc. dislike having to readoverlong business plans just as much as entrepreneurs and managers dislike writing the plans in the firstinstance!

Work on the assumption that whoever reads your plan will be completely unfamiliar with your businessor project and will be seeking answers to relatively basic questions and key issues, for example, whatwill the business do, will it make money etc.

For further information on business planning issues, refer to other papers in this series which coverinsights into business planning, financial planning, cashflow forecasting, strategic planning, devisingbusiness strategies and managing working capital. Finally, you should review the contents of theBusiness Plan Guide.

Note that a free Business Plan Template for Word (48 pages) and a complementary Guide (suppliedas a 90+ topic Help file and as a 100+ page PDF file for printing) incorporating this outline structureand additional detail is available for downloading here.

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6. Business Plan OutlineUse the outline below as the "road map" for your plan and then write up each section concisely butcomprehensively. Only address matters of real substance and major significance within the mainsections of the plan.

1. Introduction (1)

Introduce the plan. Explain who wrote it, when and for what purpose. Give contact details.See 1. Introduction within the Business Plan Guide for more info.

2. Summary (1-3)

Write last. Present the highlights of the plan. See 2. Summary within the Business PlanGuide for more info.

3. Strategic Overview (1-2)

Present the "big picture". What are the central purposes and activities of the plannedbusiness? What are its SWOTs? What are its major (long term) objectives, key strategiesand prime goals ? See 3. Strategic Overview within the Business Plan Guide for more info.






4. Present Status (1-5)

Summarize achievements and performance (financial, sales, technical etc.) to date.Introduce the stakeholders in the business. See 4. Present Status within the Business PlanGuide for more info.

5. Product/Service Offerings (1-3)

Keep descriptions short and confine them to broad groups. Explain briefly what makesthem special. See 5. Product / Service Offerings within the Business Plan Guide for moreinfo.

6. Profiles of Target Markets (3-6)

Size, segments, trends, competition and user/customer profiles. See 6. Profiles of TargetsMarkets within the Business Plan Guide for more info.

7. Marketing Strategies, Sales Plans & Projections (3-6)

How will the business market its products/services and sell to customers? What sales willbe achieved in its main markets? How will it deal with competitors ? Indicate costs. See 7.Marketing Strategies, Sales Plans & Projections within the Business Plan Guide for moreinfo.

8. Technology and R&D (0-2)

If relevant, explain progress, plans, resources and highlight any technological advances.See 8. Technology and R&D within the Business Plan Guide for more info.

9. Operational/Manufacturing Plans (2-5)

Cover distribution & service activities and/or manufacturing. Highlight major elementsonly. Indicate organization, resources, costings etc. See 9. Operational / Manufacturing



Plans within the Business Plan Guide for more info.

10. Management & Administration (2-3)

Introduce the proposed management team, structure etc. Indicate administrativearrangements and specify overhead costs. See 10. Management & Administration withinthe Business Plan Guide for more info.

11. Financial Projections (4-8)

Use simple tables to present key financial projections e.g. summary P&L, cashflows,balance sheets and key ratios. Place the detailed analyses in appendices. See 11. FinancialProjections within the Business Plan Guide for more info.

For more help, download a trial version of our financial planners- Exl-Plan (for Excel) - and review its annual output reports andTextual Summary Report.

12. Funding Requirements & Proposals (0-2)

If applicable, summarize funding requirements, possible sources, likely terms, and, forinvestors, the projected return on their investment. Be realistic!! See 12. FundingRequirements & Proposals within the Business Plan Guide for more info.

13. Implementation (1-3)

Explain the major decision points, time scale and actions required by management andothers to progress the plan. See 13. Implementation within the Business Plan Guide formore info.

14. Conclusion (1)

Indicate why the business will succeed and why it should be supported. See 14. Conclusionwithin the Business Plan Guide for more info.

Appendices

Use appendices at the very back of the plan to present important background data anddetailed plans. This will avoid disrupting the flow of the plan or cluttering it with excessivedetail. See Appendices within the Business Plan Guide for more info.

For further information on business planning issues, refer to other papers in this series which coverinsights into business planning, financial planning, cashflow forecasting, strategic planning, devising



business strategies and managing working capital. Finally, you should review the contents of theBusiness Plan Guide.




●


●


●


●


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7. Writing the Business PlanThe following suggestions may be of assistance when drafting the plan:

Build the detailed business plan on a carefully considered outline (table of contents)- see the business plan outline above.

1.

The most important and difficult sections to prepare relate to marketing and sales asthese can make or break not only the business plan but also the business itself !

2.

Support market and sales projections by market research. Ensure that there is a directrelationship between market analysis, sales forecasts and financial projections.

3.










Assess competitors' positions and possible responses realistically.

Be realistic about sales expectations, profit margins and funding requirements.Ensure that financial ratios are in line with industry norms. Do not underestimate thecost and time required for product development, market entry, securing externalsupport or raising finance. Consider the possibility of the double-double-half rule -double the cost or time required or halve the sales projections.

4.

Restrict the level of detail on product specifications and technical issues.5.

The financial projections are likely to be straightforward but decide on a sensiblelevel of detail as regards the time horizon etc. Consider using a personal computerand a financial modeling package for the projections.

See our range of financial planners - Exl-Plan (for Excel) - which canbe downloaded from here.

■

For further specific information on financial planning for businesses,refer to the page entitled Preparing Financial Projections accessiblefrom the PlanWare site.

■

6.

If looking for external equity, be realistic about the value of the business, risksinvolved and possible returns, and be sure to indicate possible exit mechanisms. Putyourself in the shoes of an investor and remember the golden rule - he who has thegold makes all the rules.

7.

The management section of the plan is of crucial - experience, balance, ability andcommitment. If a new venture is involved, then management is likely to be its onlyreal asset. Consider formation of a management team or strengthening managementas part of the plan. Remember the five ingredients of a successful business aremanagement, management, management, market and product (in that order, andnot in the reverse order as some inventors and entrepreneurs might like to think).

8.

Be positive but realistic about the business's prospects and explicitly recognize andrespond honestly to shortcomings and risks.

9.

When writing the plan:

avoid unnecessary jargon❍

economize on words❍

use short crisp sentences and bullet points❍

check spellings❍

concentrate on relevant and significant issues❍

break the text into numbered paragraphs, sections etc.❍

relegate detail to appendices❍

provide a contents page and number pages❍

10.




write the summary last.❍

Get a qualified outsider to review your plan in draft form and be prepared to adjustthe plan in the light of comments secured and experiences gained.

11.

External help and guidance in preparing a business plan can be extremely valuable.If outside help is used, make sure that the resultant plan remains your own and notthat of your advisers.

12.

If presenting the plan to outsiders, attach appendices and number pages. Add acontents page and bind it within attractive covers.

13.






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Business Planning Papers:Insights into a Business Plan

Page ContentsIntroduction to Business Planning Insights1.

Overview of Findings about Business Planning2.

Main Lessons to be Learnt for Business Plans3.

Findings: Types of Business Plans & Primary Purposes4.

Findings: Length of Business Plans & Number of Drafts5.

Findings: Time Inputs & Elapsed Times for BusinessPlanning

6.

Findings: Use of External Advisers for Business Planning7.

Findings: Difficulties Encountered when Business Planning8.

Findings: Importance of Business Plans9.

Findings: Changes to Business Plans over Time10.




Useful Links




Buy Software

Business Plan: Insights to Write a Business Plan & Improve Business Planning

http://www.planware.org/businessplanning.htm (1 of 17) [30-05-2012 7:56:06 AM]


























1. Introduction to Business PlanningInsightsThis white paper takes a very practical view of the task of preparing a businessplan. It is based on the results of a survey (see Online Surveys) which exploresthe processes and difficulties associated with the compilation of a plan.

The results were derived from complete, valid responses submitted betweenMarch 2000 and August 2001 by almost 450 site visitors who signified thatthey (a) were currently preparing a plan or (b) had compiled one in the past.Because of guaranteed anonymity, no specific information is available aboutthese respondents. However, based on our visitor logs and results of otherpolls, the majority are likely to have been US-based and either entrepreneursplanning new business or owner/managers of smallish business. A substantialminority would have been professional advisers or managers within largerbusinesses.

As the survey is ongoing, visitors who have been directly involved inpreparing a plan are invited to contribute their own experiences to the survey -it will take only a minute or so and no personal information will be sought.Other visitors are very welcome to see the latest results without completingthe actual survey. The questionnaire and very latest results can be found here.

Top of Page













2. Overview of Findings about Business PlansThe survey found at that a "typical" business plan had the following general characteristics:

Had 10-25 pages excluding appendices etc.■

Needed between two and four drafts■

Took 2-3 months to research and write■

Required much more time to research than write■

Had limited inputs from external advisers/consultants■

Was somewhat more difficult to prepare than expected■

Financial projections presented the greatest difficulty■

Was critically important/useful to the business■

Used to help raise venture capital/equity.■

Two main types of plans were identified with the following general features:

Basic plans were short (often under 10 pages plus appendices etc.); relatively quick to prepare(under one or two months); used limited external assistance; needed few drafts; and requiredmuch more researching than writing. They were somewhat more difficult to prepare thananticipated - all parts equally difficult. They were frequently used to assess the viability of abusiness or for internal/personal use and they were rated as important/useful for the business.

●

Comprehensive plans were longer than basic plans; required some months to prepare; madeslightly greater use of external help; and required somewhat more time researching thanwriting. They were more difficult to prepare than anticipated, especially the financialprojections and market analysis parts. They were often used to help raise venturecapital/equity or bank loans, and they were viewed as being critically important/useful to thebusiness.

●

Based on the survey findings, the following table characterizes "typical" plans written for differentpurposes:

Purpose ofPlan

Type ofPlan

ApproxPages *

ElapsedMonths

**

ExternalHelp ?

Numberof

Drafts

Parts ofGreatestDifficulty

Internal/personal use

Basic 10 <2 No 1-3 Market analysis

Raise bankloans

Comprehensive 15 1 Probably 2-4 Financialprojections

Seek venturecapital/equity

Comprehensive 20+ 2-5 Probably 2-5 Market analysis



Assessviability ofbusiness

Basic 10 2 Possibly 2-4 Market analysis

Secureapprovalfromshareholders/directors

Comprehensive 15 2-3 Possibly 2-6 All parts equal

* Main sections only - excludes appendices, attachments etc.** Covering research, writing & redrafting.

For detailed guidance on compiling a plan, review the white paper on How to Write a Business Plan,Free-Plan (a free 150-page Business Plan Guide and Word-based Template) and the Checklist forPreparing a Business Plan.



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3. Main Lessons to be Learnt for BusinessPlanningThe principal lessons for business planners to be drawn from the survey results include thefollowing:

Decide the underlying purpose of the plan at the very outset - to raise money, secure approvaletc. - as this will largely determine the comprehensiveness and length of the plan, amount ofresearch required, use of external help and overall time scale.

1.

From the outset, specify the structure of the plan in the form of a detailed table of contents.Use this to identify critical issues requiring research and/or external assistance.

2.

Create a work program and timetable which allows adequate time for researching, writing andredrafting.

3.

Recognize that the process could be much more difficult than expected and consider seeking4.




external assistance, sooner rather than later, for the most vital areas.

The more important the plan, the longer it will be and the longer it will take to complete.5.

For more detailed guidance on preparing a plan, check the white paper on How to Write a BusinessPlan and Free-Plan, our free 150-page Business Plan Guide and Template (Word format). Also,refer to the 30-point Checklist for Preparing a Business Plan.

If you have a problem or query relating to the compilation of a business plan which is not covered inthe various white papers, you may wish to use our free and confidential Online Business PlanAdvice Service.

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4. Findings: Types of Business Plans & PrimaryPurposesAt the outset of the survey, respondents were requested to classify their plans as being eithercomprehensive or fairly basic. As indicated in Figure 1 below, just over half of respondents' planswere categorized as fairly basic.

When asked to indicate the primary purpose of their plans, respondents indicated that basic planswere most frequently used to assess the viability of businesses and for internal/personal use.Comprehensive plans were most frequently used to raise venture capital/equity and bank loans.Figure 2 below indicates the range of purposes specified by respondents.




More detailed analysis of responses indicated that comprehensive plans were compiled in two-thirdsof all cases where respondents sought venture capital/equity. Basic plans sufficed most frequentlyfor internal/personal use or where the viability of a business was being assessed. Comprehensive andbasic plans were used in almost equal proportions to seek bank loans or approvals fromshareholders/directors.



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5. Findings: Length of Business Plans & Numberof DraftsRespondents were asked to specify the number of pages in the main part of their plan (excludingappendices, attachments etc.). Figure 3 below indicates that the main parts of almost half the basicplans were under ten pages long whereas comprehensive plans were most frequently 10-25 pageslong. Almost half of all comprehensive plans were at least 26 pages long as compared with justone-tenth of basic plans.

Plans under 10 pages long were most commonly prepared to assess viability or for internal/personaluse whereas plans over 26 pages were most commonly used to raise venture capital/equity or secureapprovals from shareholders/directors.

Figure 4 below indicates the number of drafts prepared of plans and highlights the followingpatterns:

One-fifth of basis plans and one-tenth of comprehensive plans required just one draft.●

Almost two-thirds of both comprehensive and basic plans required between two and fourdrafts.

●

Over a quarter of comprehensive plans went through five or more drafts.●



Plans for internal/personal use tended to have the least number of drafts whereas plans for raisingventure capital/equity had the most drafts.

For guidance on setting the length of a plan and tips on writing a plan, check the white paper onHow to Write a Business Plan. Also, look at our free Business Plan Guide and Template here foradditional guidance.

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6. Findings: Time Inputs & Elapsed Times forBusiness PlanningWhen asked about the elapsed time required to research and write their plans, about one-third ofrespondents completed these tasks within one month and a further one-third took two to threemonths. As indicated in Figure 5 below, the elapsed time to prepare comprehensive plans wasconsiderably longer than that for basic plans.




Over one-third of all plans compiled within an elapsed time of one month were used to seek bankloans or approvals from shareholders/directors, or they were compiled for internal/personal use. Incontrast, about one-third of all plans used to raise venture capital/equity took least three months toresearch and write.

Note: Elapsed time refers to the total time interval and not to the actual time expended on researchingand writing a plan.

Figure 6 below indicates that about half of all respondents spent much more time researching thanwriting their plans. Only a small proportion devoted little or no time to researching their plans priorto writing them.



For almost two-thirds of plans used to assess the viability of business, the time was spentresearching was much greater than that for writing. In the case of plans for the other specifiedpurposes, time spent researching was usually somewhat greater than time spent writing.

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7. Findings: Use of External Advisers forBusiness PlanningAbout two-thirds of respondents used external advisers/consultants when preparing their plans.Figure 7 below shows that the use of external help was somewhat greater for comprehensive plansthan for basic plans.



Use was made of external advisers by over two-thirds of respondents who prepared plans to raisebank loans or venture capital/equity. At the other end of the spectrum, respondents who compiledplans for internal/personal use, to assess viability or to secure approvals were least likely to useexternal advisers.

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8. Findings: Difficulties Encountered whenBusiness PlanningAs shown in Figure 8 below, financial projections and market analysis were the most difficult partsto research or write for both basic and comprehensive plans. Compilers of basic plans alsoencountered particular problems with their sales plan/forecasts.

For almost a quarter of the compilers of the basic plans, all parts of their plans were rated equallydifficult whereas a much smaller proportion of comprehensive plan writers reported such generaldifficulties.

The planning of investment proposals, operations/management and technology/R&D were not seengenerally as major areas of difficulty. Overall, only a small minority of respondents found no partstoo difficult.



Market analysis was identified as the single most difficult area encountered by respondentspreparing plans for internal/personal use, seeking venture capital/equity or assessing viability.Seekers of bank loans had most difficulty with financial projections. Respondents seeking theapproval of shareholders/directors were most likely to find all parts equally difficult.

Need Assistance with Financial Projections? Check out:

Exl-Plan is an Excel-based financial planner. Itspeeds up and simplifies the task of compilingprojections and allows users to concentrate onderiving assumptions and assessing the resultantprojections. Many versions are available to suitdifferent sizes of business and levels of expertise.

As shown in Figure 9 below, about two-thirds of the respondents thought that the process ofpreparing plans was much more difficult or somewhat more difficult than they had expected. Only2% thought that the process was easier than anticipated and no respondent found it much easierthan expected.



Over three-quarters of respondents seeking bank loans or preparing plans for internal/personal usefound the task more difficult than expected. This proportion was a little lower for those planning toraise venture capital/equity or assessing the viability of a business.



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9. Findings: Importance of Business PlansOver half of all respondents rated their plans as having been critically important and a furtherone-third rated them important. Only a minority of respondents attributed limited importance or noimportance to their plans.

As shown in Figure 10 below, comprehensive plans were much more likely to have been viewed ascritically important than basic plans.



Over half of all plans used to seek bank loans or venture capital/equity, or to assess viability wasrated as having been critically important.

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10. Findings: Changes to Business Plans overTimeThe following assessment of possible changes in respondents' views over the eighteen monthscovered by the survey must be approached with great care on the grounds that this interval wasrelatively short and the mix/backgrounds of respondents could have changed over the period.

Subject to these major qualifications, detailed analysis of the responses over time has suggested thatthe following relatively minor shifts may have occurred over the life of the survey:

The proportion of business plans prepared to secure approvals from shareholders/directorsmay have declined and the proportions used for internal/personal purposes and to raiseventure capital/equity may have increased slightly.

●

Respondents may have been taking progressively more time over their plans as evidenced bya gradual decline in the proportion of plans taking less than a month to complete.

●

Market analysis may have gradually replaced financial projections as the single most difficultpart of a plan to prepare.

●

Progressively, plans may have become even more difficult to prepare than had been originallyanticipated.

●



The proportion of plans considered critically important may have declined slightly and theproportion viewed as important may have increased to compensate.

●

For more detailed guidance on preparing a plan, check the white paper on How to Write a BusinessPlan and Free-Plan, our free 150-page Business Plan Guide and Template (Word format). Also,refer to the 30-point Checklist for Preparing a Business Plan.




If you found this analysis useful, please help us gatherinformation for the next survey:

Survey about Strengths & Weaknesses ofBusinesses

Need More Business Planning Assistance? Have a look at:

Exl-Plan Financial Planner (for Excel)Plan Write Business PlannerPlan Write Expert Business Planner


●

Excel-based, comprehensive, rolling 6-month cash flowplanner - details and download links for Cashflow PlanFree.

●

Business plan template & guidelines (Word format) - details& download link for Free-Plan.

●

Online strategic planner for creating a 3-page strategic plan- details and sample plan.

●






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Business Ideas

Business Strategies

Strategic Plan

Business Plans



Cashflow Forecasts

Working Capital

Raising Finance


11. Introducing PlanWarePlanWare develops and sells a range of financial planning packages - Exl-Plan and Cashflow Plan -for businesses of all sizes & types. Trial versions of all products can be downloaded from ourPlanWare site and many other sources on the 'Net.

We also offer an extensive range of commercial software for writing business plans, marketplanning, assessing business ideas and evaluating strategies.




●

Free business plan template (Word format).●

Pages devoted to famous business quotations and examples of bad business advice andmistakes.

●

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12. Copyright & Legal StuffThis work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs License.This means that this page and any related files are subject to the normal rules about copyright andattribution. If you wish to make an electronic or printed copy for YOUR PERSONAL USE, you arefree to do so PROVIDED THAT IT IS UNMODIFIED AND REMAINS COMPLETE IN ALL RESPECTS.All copying for commercial use requires written prior permission secured from [email protected] are free to quote short extracts provided our site's URL <www.planware.org> is acknowledgedas the source.







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Business Planning Papers:Preparing Financial

Projections

Page ContentsFinancial Models for Business Plan Projections1.

Using a Computer for Financial Projections2.

How Financial Planning Models Work3.

Planning to Make Business Plan Projections4.

Tips & Traps when Projecting Finances5.

The Next Steps in Business Planning6.





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More InfoPrepare projectionsMake cashflowforecastsGet free plannerWrite business planSeek planning adviceImprove cash flowRaise finance

See AlsoDevelop strategic planWrite strategic planGet planning insightsPlan to planSee planning surveysBusiness plan guide

Software ToolsFinancial PlannerCashflow ForecasterBusiness PlannerExpert Business PlannerMarketing PlannersFree Planners


Business Plan Projections Financial Model Pro-forma Budgeting Planner Planning Modeling

http://www.planware.org/financialprojections.htm (1 of 9) [30-05-2012 7:57:20 AM]






























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1. Financial Models for Business PlanProjectionsFinancial planning is a critical activity for every business irrespective of itsage and size. For new enterprises, the preparation of financial projections isintegral to the business planning process. For larger companies, financialplanning forms part of annual budgeting and plays an important role inlong-term planning, business appraisals, corporate development etc.

Central to the task of preparing a set of projections is the construction of amathematical model to reflect the finances and activities of a business. Salesminus Costs equals Profits (i.e. S - C = P expressed as a formula) is anexample of a very simple model for deriving projected profits fromassumptions about future sales and costs.

In practice, financial planning models are much more complex as they mustaccommodate multiple time periods (months, quarters and years) and handlehundreds of variables relating to sales, costs etc. The volume of data mountsup very quickly when each variable is multiplied by the time horizon, forexample, by twelve months. Figure 1 below lists typical assumption variablesused to generate a set of financial projections.

Figure 1 - Some assumption variables used by afinancial model to produce projected P&Ls,

cashflows and balance sheets for a manufacturingbusiness.

Sales volumesSelling pricesSelling & distribution costsTax rates for inputsResearch & developmentInterest ratesTax rates for salesManagement/administrationChanges in loans/debtBad debt provisionsGeneral overheadsOperating leases & HPTarget finished stocksDepreciation ratesCurrent year debtors/creditors

Fixed asset valuesIntangible assetsMaterial costsAccumulateddepreciationPrepayments/accrualsMaterial/WIP stocksCapital expenditureShare issuesDirect manpowerlevelsCapital & revenuegrantsDividendsWage ratesFixed asset disposalsCorporation taxOther direct costs



Opening balance sheet Finance leasesPhasing of openingbalancesOperational overheads

A comprehensive model can contain many thousands of formulae withfunctions ranging from simple addition to complex conditional statements (e.g.if projected cashflow is positive, reduce the overdraft before adding anyresidual balance to the cash account).

Financial models are used to compile forecasts and budgets; to assess possiblefunding requirements; and to explore the likely financial consequences ofalternative funding, marketing or operational strategies. They can also be usedfor business planning, raising finance, investment or funding appraisals,financial analysis, corporate planning etc.

Used effectively, a financial model can help prevent major planning errors;identify or evaluate opportunities; attract external funding; provide strategicguidance; evaluate financial and development options; monitor progress etc.

Our Exl-Plan range of Excel-based planners are ideal for financial modelingand planning. Based on a user's assumptions, they generate fully-integratedprojections for up to five years ahead. Also, Cashflow Plan producesfully-integrated cashflow projections for 12 months ahead and incorporates aroll-forward facility to simplify updating of projections.

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2. Using a Computer for Financial ProjectionsA personal computer with appropriate software can help prepare financial projections. A computer-based model reduces the tedium ofcarrying out numerous repetitive calculations; simplifies the alteration of assumptions; and improves the presentation of results.

When using a computer, a manager or planner can utilize a spreadsheet to build a model from first principles. While the development of aspreadsheet model of a company's profit & loss account should be well within the capabilities of many managers, the development of anintegrated and comprehensive financial planner is an infinitely more challenging, time consuming and difficult task. A manager must knowwhen to draw the line between using a spreadsheet to plan and becoming a spreadsheet programmer.

As an alternative to a DIY model, a manager or entrepreneur can purchase a ready-made model which can be either (a) loaded as a templateinto a spreadsheet or (b) run as a stand-alone package.

The main advantage of building a bespoke model is that it can be fine- tuned to meet very specialized requirements. However, the drawbackis that building a comprehensive, error-free and user-friendly financial model could require hundreds of hours of development and testingalong with considerable programming and financial expertise. This work inevitably distracts from the real task of planning the business andbegs the question as to why managers, entrepreneurs, advisers etc. should reinvent the wheel whenever a set of financial projections are



required.

PlanWare offers a range of financial planning packages - Exl-Plan. These incorporate extensive help facilities and are suitablefor start-up or established businesses ranging in turnover from $50,000 up to $99 million per annum. They can be used byplanners, accountants, consultants etc. as well as by managers or business people with little or no previous experience ofcomputers, finance or business planning. Also, have a look at Cashflow Plan, our range of fully-integrated cashflow plannerswhich generate projections for 12 months ahead and incorporate a roll-forward facility to simplify updating of projections.

Get Help with FinancialProjections

Exl-Plan - Integrated Multi- YearFinancial Planner

Requires: Excel 5, 7, 8, 95, 97,2000, XP, 2003, 2007 or 2010 withWindows 95/98/Me/NT/2000/XP/Vista/Win7.Prices: Free to US$ 289.

Details Trial DownloadsBuy + Use Now

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3. How Financial Planning Models WorkA computer-based financial model is the electronic equivalent of a very large sheet of ruled paper which, depending on circumstances, couldbe 10 to 20 square feet in area. The computer's screen serves as a small window on this electronic sheet which usually displays variables andvalues along rows and time periods in columns.

A model utilizes assumptions for sales volumes, prices, operating costs, funding etc., to produce projected balance sheets, profit & lossaccounts and cashflow statements. Typically, it makes monthly projections for the first year and less detailed projections for the followingyears. For example, PlanWare's models will produce projections (P&Ls, cashflows, balance sheets) for the first year on a monthly basis andfor the following two years on a quarterly basis. As all the components of a model are linked by formulae, a change to any assumption in anyperiod results in appropriate adjustments to profits, cashflows etc. throughout the model for the remaining months, quarters and years.

Once initial assumptions have been entered, they can be readily altered to evaluate alternative scenarios. For example, a model could be usedto explore the extent to which future sales can be increased while holding borrowings within predetermined limits; to assess the effects ofvarying selling prices and/or volumes on net profits; or to determine the optimum level and mix of future funding for a business.

As a practical example, Figure 2 below shows the results of using one of PlanWare's models to undertake a "what-if" analysis where salesvolumes and prices have been increased by a fixed percentage.






Figure 2 - Results of Sensitivity Analysis

Scenario: Base Case covering 12months

Sales Volumes increasedby 20%

Selling Prices increasedby 10%

Sales ($000) 553 664 608Sales (% change) n/a +20 +10Pre-tax Profits ($000) 28 65 85Pre-tax Profits (% Change) n/a +132 +204Net Cashflow ($000) 43 68 93Net Cashflow (% Change n/a +58 +116Peak Monthly Loans ($000) 72 65 57Peak Monthly Loan (%Change)

n/a -10 -21

Full-Year Return on Capital(%)

16 30 35

Given a choice between a 20% increase in sales volumes or a 10% increase in selling prices, the model shows that the latter would be a farmore attractive option. The results also offer an insight into the underlying cashflows and funding requirements. Our software planners,Exl-Plan and Cashflow Plan, offer extensive facilities and utilities for doing "what-if" sensitivity analyses.

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4. Planning to Make Business Plan ProjectionsFor managers of an existing business, or promoters planning a substantial new venture, financial modeling can be an invaluable tool to assistthe preparation of a business plan. However, business planning should not be confused with the preparation of financial projections. Theformer must provide the foundation for the financial projections which can be derived arithmetically by a model. The model and its forecastsshould contribute to but never dictate the contents of a written business plan.

Once basic issues relating to markets, sales and operations have been fully researched and considered, a model can be used to produce thefinancial projections. However, the veracity and usefulness of these projections will be completely determined by the quality and reliability ofthe underlying assumptions determined outside the model. For example, if sales or cost forecasts are unrealistic or inadequately researched,then the value of a model's output is greatly diminished. An impressive set of financial projections is of little benefit if unsupported byresearch or only based on speculation or wishful thinking.

Before using a financial model to help plan the future of a business, a manager or entrepreneur should:

Decide at the very outset on the central purpose of the planning exercise (raise funds etc.); the target audience (co-directors, financialinstitutions etc.); and the time horizon (one year etc.).

1.

Identify and think through all the critical assumptions. Prepare outline projections to confirm their overall direction, examine thecritical elements in detail and consider strategic issues relating to sales, profitability, funding etc.

2.

Check that all key assumptions (e.g. sales forecasts) and data (e.g. opening balance sheet and any prior-year financial results) are tohand, and have been adequately researched.

3.



There is a special facility, called Quik-Plan, within PlanWare's Exl-Plan and Cashflow Plan financial planning packageswhich is ideal for preparing 'first-cut' projections which can be progressively refined and expanded.

Recognize the danger of presenting too much detail or too many reports. Most senior managers, investors and financiers seek simple financialstatements which have been based on detailed analysis and realistic assumptions.

Our Exl-Plan financial planner offers several summary reports, including a 3/5 year Textual Summary Report withself-modifying text, as well as numerous graphs & tables, to present the highlights of a plan or set of projections. Also, have alook at Cashflow Plan, our range of fully-integrated cashflow planners which generate projections for 12 months ahead andincorporate a roll-forward facility to simplify updating of projections.

Cashflow Plan: Try Now for Free

Exl-Plan: Try Now for Free

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5. Tips & Traps when Projecting FinancesWhen preparing financial projections, be conscious of the pitfalls and dangers listed in Figure 3 below. These can arise as the result of a lackof foresight or insight, or because of excessive optimism. As they can lead to underestimation of the resources required to develop a businesswith potentially disastrous consequences, it can be counterproductive to overstate its potential.

Figure 3 - Financial Planning TrapsUsing financial forecasting as a substitute for business planning.●

Ignoring historic trends or performances at company, sectoral and national levels.●

Overstating market shares and growth, sales forecasts, and profit levels.●

Giving insufficient consideration to working capital requirements.●

Underestimating costs and delays likely to be encountered.●

Disregarding industry performance norms and competitors' responses.●

Breaching generally-accepted financial guide lines and ratios.●

Making unduly optimistic assumptions about the availability of loans, trade credit, grants,equity etc.

●

Seeking spurious accuracy while failing to recognize matters of strategic importance.●

Realistic views should always be taken of a business's prospects, prospective profits, funding requirements etc. There is often merit incompiling "worst" case projections to complement "most likely" or "best" forecasts. In practice, the realization of financial projections,especially for a new business without any trading history, might easily take twice as long and cost twice as much as expected. Remember thatit is much less painful to deal with a flaw in a business at the planning stage, than later on when commitments have been made and thebusiness has started trading. Our software planners - Exl-Plan and Cashflow Plan - offers comprehensive facilities for doing sensitivityanalysis (using Quik-Plan and by changing individual values).





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6. The Next Steps in Business PlanningPreparing a set of financial projections is only a means to an end. Once plans or projections have been approved or in the process of beingimplemented, they should be regularly updated and compared with the results being achieved.

A plan is only useful if it is being adhered to, if it serves as a benchmark for control purposes, and if the projected outcomes are beingrealized.

While a clear business plan with sound projections cannot guarantee success, the absence of a plan or poor projections could ensure theeventual failure of a business.

For further information on business planning issues, refer to other papers in this series which cover business planning, cashflow forecasting,strategic planning, devising business strategies and getting new business ideas. If planning to raise venture capital, business angel finance orbank loans, check the paper on raising finance.




Free Tools from PlanWareBusiness financial planner for high-level, integrated 2-year projections using Excel -details and download links for Exl-Plan Free.

●

Excel-based, comprehensive, rolling 6-month cash flow planner - details and downloadlinks for Cashflow Plan Free.

●

Business plan template & guidelines (Word format) - details & download link forFree-Plan.

●

Online strategic planner for creating a 3-page strategic plan - details and sample plan.●






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Exl-Plan - Integrated Multi-Year Financial Planner

Requires: Excel 5, 7, 8, 95,97, 2000, XP, 2003, 2007 or2010 with Windows 95/98/Me/NT/2000/XP/Vista/Win7.Prices: Free to US$ 289.


Get Help with CashFlow Planning

Cashflow Plan -Comprehensive Cash FlowForecasts

Requires: Excel 5, 7, 8, 95,97, 2000, XP, 2003, 2007or 2010 with Windows.95/98/Me/NT/2000/XP/Vista/Win7Prices: Free to US$ 199.


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Business Ideas

Business Strategies

Strategic Plan

Business Plans



Cashflow Forecasts

Working Capital

Raising Finance

7. Introducing PlanWarePlanWare develops and sells a range of financial planning packages - Exl-Plan and Cashflow Plan - for businesses of all sizes & types. Trialversions can be downloaded from our PlanWare site here and from many other sources on the 'Net.

We also offer an extensive range of commercial software for writing business plans, market planning, assessing business ideas and evaluatingstrategies.



Advice on getting new business ideas, managing working capital, devising business strategies and much more.●


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8. Copyright & Legal StuffThis work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs License. This means that this page and any relatedfiles are subject to the normal rules about copyright and attribution. If you wish to make an electronic or printed copy for YOUR PERSONALUSE, you are free to do so PROVIDED THAT IT IS UNMODIFIED AND REMAINS COMPLETE IN ALL RESPECTS. All copying for commercial
















use requires written prior permission secured from [email protected]. You are free to quote short extracts provided our site's URL<www.planware.org> is acknowledged as the source.

PlanWare, Invest-Tech Limited, Ardmeen Park, Blackrock, Co. Dublin, IrelandInternational Tel:+353-1-283 4083





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Business Planning Papers:Making Cash Flow Forecasts

Page ContentsImportance of Cash Flow1.

Cash Flow vs Profit2.

Calculating Cashflow3.

Using a Computer to Forecast Cashflow4.

Planning to Project Cashflow5.

Planning Pitfalls when Forecasting Cash Flow6.

Ways of Improving Cash Flow7.

Conclusion8.



More businesses fail for lack of cash than forwant of profit. To avoid running out of cash: - Use Cashflow Plan to anticipate your cashneeds - See Checklist for Improving Cashflow* *Cashflow Plan contains a dynamic checklist linked to youractual projections.

Useful Links





Cash Flow Plan Cash Flow Planning Profit Analyse Forecast Improve Project Cashflow Statements

http://www.planware.org/cashflowforecast.htm (1 of 11) [30-05-2012 7:57:26 AM]


































1. Importance of Cash FlowWhen planning the short- or long-term funding requirements of a business, itis more important to forecast the likely cash requirements than to projectprofitability etc. Whilst profit, the difference between sales and costs within aspecified period, is a vital indicator of the performance of a business, thegeneration of a profit does not necessarily guarantee its development, or eventhe survival. Bear in mind that more businesses fail for lack of cash flowthan for want of profit.

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2. Cash Flow vs ProfitSales and costs and, therefore, profits do not necessarily coincide with theirassociated cash inflows and outflows. While, a sale may have been securedand goods delivered, the related payment may be deferred as a result of givingcredit to the customer. At the same time, payments must be made to suppliers,staff etc., cash must be invested in rebuilding depleted stocks, new equipmentmay have to be purchased etc. For further information on the cash cycle andworking capital, click here.

The net result is that cash receipts often lag cash payments and, whilst profitsmay be reported, the business may experience a short-term cash shortfall. Forthis reason it is essential to forecast cash flows as well as project likely profits.

The following simplified example illustrates the timing differences betweenprofits and cash flows:

Income Statement: Month 1

Sales ($000) 75

Costs ($000) 65

Profit ($000) 10

Cashflows relating to Month 1: Month 1 Month 2 Month 3 Total

Receipts from sales ($000) 20 35 20 75

Payments to suppliers etc. ($000) 40 20 5 65

Net cash flow ($000) (20) 15 15 10



Cumulative net cash flow ($000) (20) (5) 10 10

This shows that the cash associated with the reported profit for Month 1 will not fully materialize untilMonth 3 and that a serious cash shortfall will be experienced during Month 1 when receipts from saleswill total only $20,000 as compared with cash payments to suppliers of $40,000.

Our Exl-Plan range of financial planners generate fully integrated profit & loss accounts with cashflowstatements and balance sheets for up to five years ahead and Cashflow Plan is a specialist cashflowplanner covering 12 months ahead, with weekly projections for the initial three months.

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3. Calculating CashflowNormally, the main sources of cash inflows to a business are receipts from sales, increases in bankloans, proceeds of share issues and asset disposals, and other income such as interest earned. Cashoutflows include payments to suppliers and staff, capital and interest repayments for loans, dividends,taxation and capital expenditure.

Net cash flow is the difference between the inflows and outflows within a given period. A projectedcumulative positive net cash flow over several periods highlights the capacity of a business to generatesurplus cash and, conversely, a cumulative negative cash flow indicates the amount of additional cashrequired to sustain the business.

Cashflow planning entails forecasting and tabulating all significant cash inflows relating to sales, newloans, interest received etc. and then analyzing in detail the timing of expected payments relating tosuppliers, wages, other expenses, capital expenditure, loan repayments, dividends, tax, interestpayments etc. The difference between the cash in- and out-flows within a given period indicates the netcash flow. When this net cash flow is added to or subtracted from opening bank balances, any likelyshort-term bank funding requirements can be ascertained.

If you need to produce regularly-updated cashflow projections, have a look atCashflow Plan, our range of fully-integrated cashflow planners whichgenerate projections for 12 months ahead and incorporate a roll-forwardfacility to simplify updating of projections. Details and free/trial versiondownloads.

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4. Using a Computer to Forecast CashflowWith the aid of a computer and suitable software, a mathematical model can be used to prepare cashflow projections and project short-term banking requirements for a business. The use of acomputer-based model reduces the tedium of carrying out numerous repetitive calculations andsimplifies the alteration of assumptions and the presentation of results. A computer-based model can beconstructed using a spreadsheet or acquired as a stand-alone package. If constructing a spreadsheetmodel, be aware that it is not as easy as it might seem to build a friendly, robust and error-free planner.

Our Exl-Plan range can be used to compile 3-5 year cash flow projections by month forthe first year, by quarter for the next two years and annually for the final two years. Also,have a look at Cashflow Plan, our range of fully-integrated cashflow planners whichgenerate projections for 12 months ahead and incorporate a roll-forward facility tosimplify updating of projections.

A cash flow model can be used to compile forecasts, assess possible funding requirements and explorethe likely financial consequences of alternative strategies. Used effectively, a model can help preventmajor planning errors, anticipate problems, identify opportunities to improve cash flow or provide abasis for negotiating short-term funding from a bank.

Generally, when seeking external funding, the time horizon covered by a set of projections should beequal to or greater than the period for which the funding is needed. The greater the amount of fundingrequired and the longer the period of exposure for the provider of these funds, the more comprehensivemust be the supporting projections and plan.

Typically, a computer model for short-term bank planning uses assumptions on sales, costs, credit,funding etc. to produce monthly cash flow projections for up to a year ahead. The initial assumptionscan be readily altered to evaluate alternative scenarios. For example, a model could be used to explorethe extent to which future sales could be increased whilst holding bank borrowings withinpredetermined limits; to assess the effects on cash flow of varying sales, costs or credit terms; or todetermine the likely short-term funding requirements for a business.

Once assumptions on sales, expense payments etc. have been established, a model can be used toproduce the cash flow projections which, in turn, indicate the likely future cash balances or bankingrequirements.

However, the quality of these projections will be completely determined by the standard and reliabilityof the underlying assumptions. For example, if forecasts for sales, working capital or costs areunrealistic or inadequately researched, then the value of the model's output is greatly diminished. Animpressive set of projections is of little benefit if it is unsupported by experience or research or based onmere speculation. In fact, they could be very damaging, or even destroy the business.



Get a Cash Flow Planner forFree

Cashflow Plan Free generates comprehensiveshort-term cashflow and financial projections. It isuseful in its own right and a great introduction to ourCashflow Plan and Exl-Plan ranges. Get details anddownload.

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5. Planning to Project CashflowBefore using a model for short-term cash flow forecasting, a manager or entrepreneur should:

Decide the central purpose of the exercise (internal planning and control, negotiate a loan etc.).●

Identify the target audience (directors, bank manager etc.)●

Set the time intervals and horizon (e.g. monthly for twelve months)●

Sort out the level of detail required.●

Check that all the necessary key assumptions and data are to hand and have been adequatelyresearched.

●

Compile opening balances for all items which will involve cash flows within the forecastingperiod.

●

Think through the likely impact of the critical assumptions on the cash flow projections. Ifnecessary, prepare preliminary forecasts manually to confirm their overall direction and considerthe underlying strategic issues relating to sales, funding, costs, stocks etc. As a guide, salesforecasts and debtor & creditor terms are likely to have the most profound impacts on short-termcash flows.

●

To produce regularly-updated cashflow projections, have a look at Cashflow Plan, our range offully-integrated cashflow planners which generate projections for 12 months ahead and incorporate aroll-forward facility to simplify updating of projections. Details and free/trial version downloads.


Cashflow Plan - ComprehensiveCash Flow Forecasts



http://www.planware.org/cashfree.htm





Requires: Excel 5, 7, 8, 95, 97,2000, XP, 2003, 2007 or 2010 withWindows. 95/98/Me/NT/2000/XP/Vista/Win7Prices: Free to US$ 199.


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6. Planning Pitfalls when Forecasting Cash FlowWhen preparing cash flow projections, be aware of the dangers of:

Overstating sales forecasts●

Underestimating costs and delays likely to be encountered●

Ignoring historic trends or performances by debtors etc.●

Making unduly-optimistic assumptions about the availability of bank loans, credit, grants, equityetc.

●

Seeking spurious accuracy whilst failing to recognize matters of strategic importance●

These problems can arise as the result of a lack of foresight or knowledge, or because of excessiveoptimism. They can lead to under-estimation of the cash and other resources required to sustain ordevelop a business with potentially disastrous consequences.

When forecasting bank requirements and preparing cash flow projections, realistic views should alwaysbe taken about future prospects. There is often merit in compiling "worst" case projections tocomplement "most likely" or "best" forecasts and to accept that the "worst" case might occur and toplan accordingly. Our software planners, Exl-Plan and Cashflow Plan, offer extensive facilities fordoing sensitivity analyses.










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7. Ways of Improving Cash FlowOnce the cash flow projections have been prepared, they should be critically examined and used as amanagement tool to control and improve the business's expected cash position. Issues which might beexamined include the following:

30+ Ways of Improving Net CashflowIncrease sales (particularly those involving cash payments).1.

Reduce direct and indirect costs and overhead expenses.2.

Defer discretionary projects which cannot achieve acceptable cash paybacks(e.g. within one year ???).

3.

Increase prices especially to slow payers.4.

Review the payment performances of customers - involve sales force.5.

Become more selective when granting credit.6.

Seek deposits or multiple stage payments.7.

Reduce the amount/time of credit given to customers.8.

Bill as soon as work has been done or order fulfilled.9.

Improve systems for billing and collection.10.

Use the 80/20 rule to control inventories, receivables and payables.11.

Improve systems for paying suppliers.12.

Generate regular reports on receivable ratios and aging.13.

Establish and adhere to sound credit practices - train staff.14.

Use more pro-active collection techniques.15.






Add late payment charges or fees where possible.16.

Increase the credit taken from suppliers.17.

Negotiate extended credit from suppliers.18.

Make prompt payments only when worthwhile discounts apply.19.

Reduce inventory (stock) levels and improve control over work-in-progress.20.

Sell off or return obsolete/excess inventory.21.

Utilize factoring, or discount facilities, to accelerate receipts from sales.22.

Defer or re-stage all capital expenditure.23.

Use alternative financing methods, such as leasing, to gain access to the use (butnot ownership) of productive assets.

24.

Re-negotiate bank facilities to reduce charges.25.

Seek to extend debt repayment periods.26.

Net off or consolidate bank balances.27.

Sell off surplus assets or make them productive.28.

Enter into sale and lease-back arrangements for productive assets.29.

Defer dividend payments.30.

Raise additional equity.31.

Convert debt into equity.32.

Make medium- and short-term cashflow forecasts and update them regularly -see Cashflow Plan.

33.

You can view/print a copy of this table in the form of a management checklist here.

More businesses fail for lack of cash than for want of profit. Toavoid running out of cash: - Use Cashflow Plan to anticipate your cash needs - See Checklist for Improving Cashflow* *Cashflow Plan contains a dynamic checklist linked to your actual projections.

Once a set of cash flow projections have been prepared, a computer model, like Exl-Plan and CashflowPlan, can be used to explore the impact of alternative measures, such as those described above, on thenet cash flow and on bank requirements.

Free Tools from PlanWare





Business financial planner for high-level, integrated 2-yearprojections using Excel - details and download links forExl-Plan Free.

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8. ConclusionCheck out the quotations on our page of Quotations to read what other people have to say about cash.

For further information on planning issues, see other papers in this series which deal with financialplanning, strategic planning, devising business strategies, managing working capital and the preparationof business plans.





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Business Planning Papers:Managing Working Capital

Page ContentsWorking Capital Cycle1.

Sources of Additional Working Capital2.

Handling Receivables (Debtors)3.

Managing Payables (Creditors)4.

Inventory Management5.

Key Working Capital Ratios6.



More businesses fail for lack of cash than forwant of profit. To avoid running out of cash: - Use Cashflow Plan to anticipate your cashneeds - See Checklist for Improving Cashflow* *Cashflow Plan contains a dynamic checklist linked to youractual projections.

1. Working Capital CycleCash flows in a cycle into, around and out of a business. It is the business's life

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blood and every manager's primary task is to help keep it flowing and to usethe cashflow to generate profits. If a business is operating profitably, then itshould, in theory, generate cash surpluses. If it doesn't generate surpluses, thebusiness will eventually run out of cash and expire. Click here for moreinformation about the vital distinction between profits and cashflow.

The faster a business expands, the more cash it will need for working capitaland investment. The cheapest and best sources of cash exist as working capitalright within business. Good management of working capital will generate cashwill help improve profits and reduce risks. Bear in mind that the cost ofproviding credit to customers and holding stocks can represent a substantialproportion of a firm's total profits.

There are two elements in the business cycle that absorb cash - Inventory(stocks and work-in-progress) and Receivables (debtors owing you money).The main sources of cash are Payables (your creditors) and Equity andLoans.

Each component of working capital (namely inventory, receivables andpayables) has two dimensions ........TIME ......... and MONEY. When it comesto managing working capital - TIME IS MONEY. If you can get money tomove faster around the cycle (e.g. collect monies due from debtors morequickly) or reduce the amount of money tied up (e.g. reduce inventory levelsrelative to sales), the business will generate more cash or it will need toborrow less money to fund working capital. As a consequence, you couldreduce the cost of bank interest or you'll have additional free money availableto support additional sales growth or investment. Similarly, if you cannegotiate improved terms with suppliers e.g. get longer credit or an increased



credit limit, you effectively create free finance to help fund future sales.

If you ....... Then ......Collect receivables(debtors) faster

● You release cashfrom the cycle

Collect receivables(debtors) slower

● Your receivablessoak up cash

Get better credit (in termsof duration or amount)from suppliers

● You increase yourcash resources

Shift inventory (stocks)faster

● You free up cash

Move inventory (stocks)slower

● You consume morecash

It can be tempting to pay cash, if available, for fixed assets e.g. computers, plant, vehicles etc. If you do pay cash, remember that this is nowlonger available for working capital. Therefore, if cash is tight, consider other ways of financing capital investment - loans, equity, leasingetc. Similarly, if you pay dividends or increase drawings, these are cash outflows and, like water flowing down a plug hole, they removeliquidity from the business.

More businesses fail for lack of cash than for want of profit.

For information on cash flow planning, see Making Cash Flow Forecasts, Cashflow Plan software and Checklist for Improving Cash Flow.





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2. Sources of Additional Working CapitalSources of additional working capital include the following:

Existing cash reserves●

Profits (when you secure it as cash !)●

Payables (credit from suppliers)●

New equity or loans from shareholders●

Bank overdrafts or lines of credit●

Long-term loans●

If you have insufficient working capital and try to increase sales, you can easily over-stretch the financial resources of the business. This iscalled overtrading. Early warning signs include:

Pressure on existing cash●

Exceptional cash generating activities e.g. offering high discounts for early cash payment●

Bank overdraft exceeds authorized limit●

Seeking greater overdrafts or lines of credit●

Part-paying suppliers or other creditors●

Paying bills in cash to secure additional supplies●

Management pre-occupation with surviving rather than managing●

Frequent short-term emergency requests to the bank (to help pay wages, pending receipt of a cheque).●

For information on cash flow planning, see Making Cash Flow Forecasts, Cashflow Plan software and Checklist for Improving Cash Flow.

More businesses fail for lack of cash than for want of profit. Toavoid running out of cash: - Use Cashflow Plan to anticipate your cash needs - See Checklist for Improving Cashflow* *Cashflow Plan contains a dynamic checklist linked to your actual projections.

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3. Handling Receivables (Debtors)Cashflow can be significantly enhanced if the amounts owing to a business are collected faster. Every business needs to know.... who owesthem money.... how much is owed.... how long it is owing.... for what it is owed.

Late payments erode profits and can lead to bad debts.

Slow payment has a crippling effect on business, in particular on small businesses who can least afford it. If you don't manage debtors, theywill begin to manage your business as you will gradually lose control due to reduced cashflow and, of course, you could experience anincreased incidence of bad debt. The following measures will help manage your debtors:

Have the right mental attitude to the control of credit and make sure that it gets the priority it deserves.1.

Establish clear credit practices as a matter of company policy.2.

Make sure that these practices are clearly understood by staff, suppliers and customers.3.

Be professional when accepting new accounts, and especially larger ones.4.

Check out each customer thoroughly before you offer credit. Use credit agencies, bank references, industry sources etc.5.

Establish credit limits for each customer... and stick to them.6.

Continuously review these limits when you suspect tough times are coming or if operating in a volatile sector.7.

Keep very close to your larger customers.8.

Invoice promptly and clearly.9.

Consider charging penalties on overdue accounts.10.

Consider accepting credit /debit cards as a payment option.11.

Monitor your debtor balances and ageing schedules, and don't let any debts get too large or too old.12.

Recognize that the longer someone owes you, the greater the chance you will never get paid. If the average age of your debtors is gettinglonger, or is already very long, you may need to look for the following possible defects:

weak credit judgement■

poor collection procedures■

lax enforcement of credit terms■

slow issue of invoices or statements■

errors in invoices or statements■

customer dissatisfaction.■

Debtors due over 90 days (unless within agreed credit terms) should generally demand immediate attention. Look for the warning signs of afuture bad debt. For example.........

longer credit terms taken with approval, particularly for smaller orders❍

use of post-dated checks by debtors who normally settle within agreed terms❍

evidence of customers switching to additional suppliers for the same goods❍

new customers who are reluctant to give credit references❍



receiving part payments from debtors.❍

Profits only come from paid sales.

The act of collecting money is one which most people dislike for many reasons and therefore put on the long finger because they convincethemselves there is something more urgent or important that demand their attention now. There is nothing more important than gettingpaid for your product or service. A customer who does not pay is not a customer. Here are a few ideas that may help you in collectingmoney from debtors:

Develop appropriate procedures for handling late payments.●

Track and pursue late payers.●

Get external help if your own efforts fail.●

Don't feel guilty asking for money.... its yours and you are entitled to it.●

Make that call now. And keep asking until you get some satisfaction.●

In difficult circumstances, take what you can now and agree terms for the remainder. It lessens the problem.●

When asking for your money, be hard on the issue - but soft on the person. Don't give the debtor any excuses for not paying.●

Make it your objective is to get the money - not to score points or get even.●

Our range of financial planners, Exl-Plan and Cashflow Plan, contain extensive facilities for exploring alternative payment scenarios forreceivables. See also the white paper on Making Cashflow Forecasts and Checklist for Improving Cashflow.

Get a Cash Flow Planner for FreeCashflow Plan Free generates comprehensive short-term cashflow andfinancial projections. It is useful in its own right and a great introduction toour Cashflow Plan and Exl-Plan ranges. Get details and download.

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4. Managing Payables (Creditors)Creditors are a vital part of effective cash management and should be managed carefully to enhance the cash position.

Purchasing initiates cash outflows and an over-zealous purchasing function can create liquidity problems. Consider the following:

Who authorizes purchasing in your company - is it tightly managed or spread among a number of (junior) people?●

Are purchase quantities geared to demand forecasts?●

Do you use order quantities which take account of stock-holding and purchasing costs?●

Do you know the cost to the company of carrying stock ?●

Do you have alternative sources of supply ? If not, get quotes from major suppliers and shop around for the best discounts, credit terms,●






and reduce dependence on a single supplier.

How many of your suppliers have a returns policy ?●

Are you in a position to pass on cost increases quickly through price increases to your customers ?●

If a supplier of goods or services lets you down can you charge back the cost of the delay ?●

Can you arrange (with confidence !) to have delivery of supplies staggered or on a just-in-time basis ?●

There is an old adage in business that if you can buy well then you can sell well. Management of your creditors and suppliers is just asimportant as the management of your debtors. It is important to look after your creditors - slow payment by you may create ill-feeling and cansignal that your company is inefficient (or in trouble!).

Remember, a good supplier is someone who will work with you to enhance the future viability and profitability of your company.

Our range of financial planners, Exl-Plan and Cashflow Plan, contain extensive facilities for exploring alternative payment scenarios forpayables. See also the white paper on Making Cashflow Forecasts and Checklist for Improving Cashflow.

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5. Inventory ManagementManaging inventory is a juggling act. Excessive stocks can place a heavy burden on the cash resources of a business. Insufficient stocks canresult in lost sales, delays for customers etc.

The key is to know how quickly your overall stock is moving or, put another way, how long each item of stock sit on shelves before beingsold. Obviously, average stock-holding periods will be influenced by the nature of the business. For example, a fresh vegetable shop mightturn over its entire stock every few days while a motor factor would be much slower as it may carry a wide range of rarely-used spare parts incase somebody needs them.

Nowadays, many large manufacturers operate on a just-in-time (JIT) basis whereby all the components to be assembled on a particular today,arrive at the factory early that morning, no earlier - no later. This helps to minimize manufacturing costs as JIT stocks take up little space,minimize stock-holding and virtually eliminate the risks of obsolete or damaged stock. Because JIT manufacturers hold stock for a very shorttime, they are able to conserve substantial cash. JIT is a good model to strive for as it embraces all the principles of prudent stockmanagement.

The key issue for a business is to identify the fast and slow stock movers with the objectives of establishing optimum stock levels for eachcategory and, thereby, minimize the cash tied up in stocks. Factors to be considered when determining optimum stock levels include:

What are the projected sales of each product?■

How widely available are raw materials, components etc.?■

How long does it take for delivery by suppliers?■

Can you remove slow movers from your product range without compromising best sellers?■

Remember that stock sitting on shelves for long periods of time ties up money which is not working for you. For better stock control, try thefollowing:

Review the effectiveness of existing purchasing and inventory systems.●

Know the stock turn for all major items of inventory.●




Apply tight controls to the significant few items and simplify controls for the trivial many.●

Sell off outdated or slow moving merchandise - it gets more difficult to sell the longer you keep it.●

Consider having part of your product outsourced to another manufacturer rather than make it yourself.●

Review your security procedures to ensure that no stock "is going out the back door !"●

Higher than necessary stock levels tie up cash and cost more in insurance, accommodation costs and interest charges.

Our range of financial planners, Exl-Plan and Cashflow Plan, contain extensive facilities for exploring alternative stock-holding strategies.See also the white paper on Making Cashflow Forecasts and Checklist for Improving Cashflow.





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6. Key Working Capital RatiosThe following, easily calculated, ratios are important measures of working capital utilization.

Ratio Formulae Result Interpretation

Stock Turnover(in days)

Average Stock * 365/Cost of Goods Sold

= x days

On average, you turn over the value of your entirestock every x days. You may need to break thisdown into product groups for effective stockmanagement.Obsolete stock, slow moving lines will extendoverall stock turnover days. Faster production,fewer product lines, just in time ordering willreduce average days.







Receivables Ratio(in days)

Debtors * 365/Sales

= x days

It take you on average x days to collect monies dueto you. If your official credit terms are 45 day andit takes you 65 days... why ?One or more large or slow debts can drag out theaverage days. Effective debtor management willminimize the days.

Payables Ratio(in days)

Creditors * 365/Cost of Sales (or Purchases)

= x days

On average, you pay your suppliers every x days.If you negotiate better credit terms this willincrease. If you pay earlier, say, to get a discountthis will decline. If you simply defer paying yoursuppliers (without agreement) this will alsoincrease - but your reputation, the quality ofservice and any flexibility provided by yoursuppliers may suffer.

Current RatioTotal Current Assets/

Total Current Liabilities= x times

Current Assets are assets that you can readily turnin to cash or will do so within 12 months in thecourse of business. Current Liabilities are amountyou are due to pay within the coming 12 months.For example, 1.5 times means that you should beable to lay your hands on $1.50 for every $1.00you owe. Less than 1 times e.g. 0.75 means thatyou could have liquidity problems and be underpressure to generate sufficient cash to meetoncoming demands.

Quick Ratio(Total Current Assets -

Inventory)/Total Current Liabilities

= x timesSimilar to the Current Ratio but takes account ofthe fact that it may take time to convert inventoryinto cash.

Working Capital Ratio(Inventory + Receivables -

Payables)/Sales

As % SalesA high percentage means that working capitalneeds are high relative to your sales.

Other working capital measures include the following:

Bad debts expressed as a percentage of sales.●

Cost of bank loans, lines of credit, invoice discounting etc.●

Debtor concentration - degree of dependency on a limited number of customers.●

Once ratios have been established for your business, it is important to track them over time and to compare them with ratios for othercomparable businesses or industry sectors.

When planning the development of a business, it is critical that the impact of working capital be fully assessed when making cashflowforecasts. Our financial planning software packages - Exl-Plan and Cashflow Plan - can facilitate this task as they provide for the setting oftargets for receivables, payables and inventory.







Exl-Plan - Integrated Multi-Year Financial Planner

Requires: Excel 5, 7, 8, 95,97, 2000, XP, 2003, 2007 or2010 with Windows 95/98/Me/NT/2000/XP/Vista/Win7.Prices: Free to US$ 289.



Cashflow Plan -Comprehensive Cash FlowForecasts

Requires: Excel 5, 7, 8, 95,97, 2000, XP, 2003, 2007or 2010 with Windows.95/98/Me/NT/2000/XP/Vista/Win7Prices: Free to US$ 199.


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7. Introducing PlanWarePlanWare develops and sells a range of financial planning packages - Exl-Plan and Cashflow Plan - for businesses of all sizes & types. Trialversions of all products can be downloaded from our PlanWare site and many other sources on the 'Net.

We also offer an extensive range of commercial software for writing business plans, market planning, assessing business ideas and evaluatingstrategies.



Advice on getting new business ideas, managing working capital, devising business strategies and much more.●


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Introduction - Plan to Plan - Length of Plan - Basic Plan

Front of Plan - Cover - Contents - Basic Info - 1.Introduction - 2.Summary

Body of Plan - 3.Strategies - 4.Status - 5.Offerings - 6.Markets - 7.Sales - 8.Technology - 9.Operations - 10.Manage'nt - 11.Financials - 12.Funding - 13.Implement - 14.Conclusion

Appendices - Introduction - Marketing - Operational - Finance

Business Plan Guide

Channel Contents

Introduction to Business Plan Guide: Introduces the guide andexplains how to get started.

❍

Front of Business Plan: Discusses the items that appeartowards the front of a business plan.

❍

Body of Business Plan: A section-by-section guide to the keyelements of a comprehensive business plan.

❍

Appendices to Business Plan: Reviews the detailedinformation that could be relegated to appendices in abusiness plan.

❍


●


●

Cash Flow Forecast Software: Excel templates for full-integrated12-month projections for planning and managing cash flows.

●

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Includes initial 12-week forecasts and roll-forward facility.


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Free Exl-Plan Free, high-level financial planner for Excel forcreating projected income statements, cashflows and balancesheets for 2 years ahead. Includes a free comprehensive150-page business plan guide and Word-based template.

❍

Free Cashflow Plan Free, an Excel-based, business cash flowplanner with roll-forward facility for short-term projections.

❍

Free-Plan (Biz-Plan), a free Business Plan Template for Word(48 pages) and guide (supplied as a 90+ topic Help file and asa 100+ page PDF file for printing).

❍

Free Online Strategic Planner for compiling a 2-3 pagestrategic business plan.

❍

Free Online Business Planner for developing a 5-6 pageoutline of a comprehensive business plan.

❍

Free Business Plan eGuides, compilation of papers onbusiness planning matters.

❍

Free Online Advice Service for problems relating to thecompilation of a business plan.

❍

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Business Ideas

Business Strategies

Strategic Plan

Business Plans



Cashflow Forecasts

Working Capital

Raising Finance



Channel Contents

Getting New Business Ideas: Considering strengthsand weaknesses, getting and assessing ideas, and nextsteps.

❍

Devising Business Plan Strategies: Success andfailure, existing strategies and future SWOTs,strategic combinations and statements, and next steps.

❍

Developing a Strategic Business Plan: Key steps,hindsight plus cause & effect, SWOTs and planningworksheet.

❍

How to Write a Business Plan: Importance ofstrategy, preparatory work, planning to plan, outlineof a business plan, and tips when writing.

❍

Insights into a Business Plan: Scope of survey,overview of findings, lessons learnt, and detailedresults and conclusions.

❍

Preparing Financial Projections: Financial modelingwith a computer, how models work, planning to plan,and tips & traps.

❍

Making Cashflow Forecasts: Importance of cash, cash❍

Useful LinksSoftware Tools

Financial PlannersCashflow PlannersBusiness PlannersStrategy PlannersMarketing PlannersFree Planners

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These papers are covered by aCreative CommonsAttribution-NonCommercial-NoDerivsLicense. You can copy them forPERSONAL USE provided they areUNMODIFIED AND REMAINCOMPLETE IN ALL RESPECTS.Copying for commercial use requireswritten prior permission.

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flow vs. profit, calculating cash flows, planning andthe pitfalls, and improving cash flow.

Managing Working Capital: Working capital cycle,sources of cash, receivables, payables & inventory,and the key ratios.

❍

Raising Finance: guidance on compiling thefinancial/funding sections of a business plan forraising finance from venture capitalists, businessangels and/or banks

❍

See also:Financial Projection Software: Excel-based templates forcomprehensive, multi-year financial projections for businessplans, raising finance and strategic planning. Includes150-page Word-based template and guide for writing aplan.

●

Business Plan Software: Tools and expert systems forassessing business ideas and strategies and for writing acomprehensive business plan.

●

Cash Flow Forecast Software: Excel templates forfull-integrated 12-month projections for planning andmanaging cash flows. Includes initial 12-week forecasts androll-forward facility.

●

Marketing & Sales Plan Software: Tools and expert systemsfor developing marketing and sales strategies and tactics,setting prices, closing sales and writing professional plans.

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Introduction to BusinessPlan Guide

Next

This Business Plan Guide describes the possible structure and contents of abusiness plan. It is divided into three main parts - Front of Plan, Body of Planand Appendices - with the details spread over about twenty pages thatcorrespond to the main sections of a business plan.

It is aimed at new/established businesses seeking to expand, raise finance etc.and needing to produce a comprehensive* business plan for internal orexternal use. While not specifically intended for very small businesses, itcontain many ideas and issues which could be used to produce a more basic*plan - see Preparing a Basic/Short Plan.

* See white paper on Insights into Business Planning for more information about the differencesbetween comprehensive and basic plans.

Importance of the Planning Process & Having aPlan

The Guide may appear intimidating due to its length and detail. A cynic mightsay that the Guide is longer than the plan it aims to assist! However, bear inmind that the Guide was designed to cover a diversity of situations. It will bemuch less intimidating once you have adjusted its contents to reflect yourspecific needs as explained in pages dealing with Planning to Plan, Length of aPlan, Preparing a Basic/Short Plan and Table of Contents.

We make no apology for the Guide's detail as the launch or development of asubstantial business is not a task for the fainthearted. When starting to preparea business plan, be mindful that:

The planning process (thinking, exploring,researching, consulting and discussing) will be atleast as important as the written plan.

❍

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It is far easier to correct errors of judgment orexplore new options when researching a businessplan than when actually operating the business.

❍

A sound business plan is not a sure-fire route tosuccess or a "get rich quick" recipe but it should helpanticipate and resolve problems and to point the bestway forward.

❍


Some business plans, like war plans, may not survive "first contact with the enemy" (i.e. withmarket/competition) but, even in these circumstances, they can provide the basis for recognizing theexistence of a problem (e.g. sales less than planned) and the starting point for a solution (e.g. doublesales expenditure). If there was no sales forecast and no expenditure budget at the outset, it would bevery hard to formulate a solution. You don't want to be like Lewis Caroll's Alice in Wonderland:

Alice came to the fork in the road."Which road do I take?" she asked."Where do you want to go?" responded the Cheshire cat."I don't know," Alice answered."Then," said the cat, "it doesn't matter."

General Approach to Using the Guide

In developing the Guide, we have assumed that the plan's initial audience is its author and closeassociates. Accordingly, it has been structured to help them do their "homework" and comprehensivelypursue all the key issues, ideas and numbers. This means that the initial "final" plan may be (a lot) moredetailed than the version that is distributed to any third-parties.

As will be seen, we have put a lot of emphasis in this Guide on the presentation of factual (or estimated)data in simple tables which can be backed up off-plan in working papers and used to feed into financialprojections. A business plan should come across as a straightforward, business-like and professionaldocument - it is not a novel, academic thesis or philosophical paper.

From the outset, recognize that your plan is unlikely to be completed in one or even two drafts. Formore on this, see PlanWare's white paper on Insights into Business Planning and the latest results fromits ongoing survey on Preparing a Business Plan.

Once your plan has been completed using this Guide, it can be easily shortened for presentation to thirdparties while retaining the Template's basic structure or, alternatively, by cutting/pasting into an entirelynew structure. For example, if participating in a business plan competition which specifies a preciseformat for entries and limits page numbers, you can edit and copy/paste your draft plan to suit.

In all cases, review the length of your final draft plan, and if its body (excluding appendices) is muchabove 30 pages (even for a substantial business), consider some serious scaling back. Be sure to retainthis draft as a backing document to underpin your shorter distributed plan. For more guidance on this,









see Length of a Plan and Preparing a Basic/Short Plan.

How to Get Started with the Guide

To get started with the Guide:

Review the introductory items dealing with Planning to Plan, Length of a Plan and, ifappropriate, Preparing a Basic/Short Plan.

1.

Explore the entire Guide and think through the most appropriate structure and flow for your ownplan.

2.

Continue this process by printing out the relevant pages from the Guide.3.

Construct a detailed Contents page incorporating your revised section headings to get the rightoverall framework for your plan.

4.

Review your content's list and the Guide's detailed notes to identify key gaps in your preparatoryresearch and analysis.

5.

Sort out these gaps before starting to write your plan. In other words, do your main planningbefore drafting a detailed plan - resist the temptation to start writing before you have done all thepreliminary work, or have really decided what you want to say. Most probably, you will need todo substantial market research and analysis to provide the backdrop for your business. Skip thisstep at your peril as a failure to assess the market could undermine your entire plan. Use 6.Profiles of Target Markets to help structure this work.

6.

Having undertaken market research and confirmed that there is a viable opportunity for yourbusiness, commence the definition of the 3. Strategic Overview.

7.

To help plan your plan, review the Checklist for Preparing a Business Plan.8.

If you want advice on how NOT to write a business plan, you should study the 20 suggestions inWriting a Business Plan or Checklist for Preparing a Business Plan !!

BusinessPlan

Guide



Additional HelpThe following white papers and tools may be helpful during your preliminary planning and thinking:

Getting Business Ideas●

Devising Business Strategies●

Developing a Strategic Business Plan●

Online Strategic Planner●

Once you are ready to start drafting, have a look at the white paper How to Write a Business Plan forfurther suggestions. Also review the paper on Insights into Business Planning to get some very practicalguidance on many key issues connected with the preparation of a plan - different types of plans, lengthof plans, elapsed time, importance, difficulties and so on. This is well worth checking out as it reflects





the views of a substantial number of people who have written their own plans.

Another item that will assist you in getting your thoughts together and outlining the structure andcontents of your plan is Free-Plan. This 150-page Business Plan Guide and Template is available asfreeware. It complements this online Business Plan Guide.

If you need help with your financial projections, evaluate Exl-Plan, our comprehensive Excel-basedfinancial planner. This is available in nine versions to suit different business sizes - from smallest tolargest. You can download trial and free versions of Exl-Plan here.

If you would like to consider using business planning software to help speed up the writing and to gainaccess to additional help, have a look at Plan Write Business Planner. This package integrates wordprocessing, text outliner, financial planner and charting with extensive online help about businessplanning. It is especially suitable for first-time business planners, smaller businesses and manyprofessional advisers. Also, check out the Plan Write Expert Business Planner which combines an"expert" system with a business planner.

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Introduction to BusinessPlan Guide:

Planning to Plan

PreviousNext

A business plan is, in many respects, the most important document that abusiness ever creates as it is the "proof of concept", road map for growthand/or carrot to secure external support. This is very evident from the surveyfindings described in Insights into Business Planning.

Before Starting Your Plan

Before starting your plan, consider the following findings derived from anextensive survey offering Insights into Business Planning conducted byPlanWare:

Determine the underlying purpose of the plan at the very outset - toraise money, secure approval etc. - as this will largely determine thecomprehensiveness and length of the plan, amount of research required,use of external help and overall time scale.

●

Decide on the time horizon to be covered by the plan's 11. FinancialProjections and 12. Funding as this will also determine the number ofyears to be covered by its non-financial projections. In addition,consider setting the start date for all projections to coincide with thelikely finish date of the plan. For example, if you are starting to plan inJanuary and expect to circulate the final plan in mid-year, you shouldconsider:

Using an opening balance sheet in 11. Financial Projectionsfor end-June.

■

Drafting 4.2. Progress to Date in 4. Present Status up to■

●

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end June.

Setting July as the start month for all your detailed plans.■

This approach will ensure that your plan is not obsolete by the time ithas been written !

For help with financial projections, see Exl-Plan.●

Identify who is likely to read the plan (or its summary), e.g. board ofdirectors, potential investors, lending institution, divisional managementetc., and think through the issues they would want to see addressed.

●

Decide on the type of plan that is needed:●


BusinessPlan

Guide



Basic plans are short (often under 15 pages plus appendices etc.); relatively quick toprepare (under one or two months); use limited external assistance; need few drafts; andrequire much more researching than writing. They are somewhat more difficult to preparethan anticipated - all parts equally difficult. They are frequently used to assess the viabilityof a business or for internal/personal use and they are rated as important/useful for thebusiness. See Preparing a Basic/Short Plan.

❍

Comprehensive plans are longer than basic plans; require some months to prepare; makeslightly greater use of external help; and require somewhat more time researching thanwriting. They are more difficult to prepare than anticipated, especially the financialprojections and market analysis parts. They are often used to help raise venturecapital/equity or bank loans, and they are viewed as being critically important/useful to thebusiness.

❍

Specify the structure of your plan in the form of a detailed Table of Contents. Use this to identifycritical issues requiring research and/or external assistance and to set page lengths for each mainsection. See also Length of Business Plan.

●

Importance of Preliminary Research

Based on your Table of Contents, create a work program and timetable which allows adequate time forresearching, writing and redrafting.

Shortcomings in the concept and gaps in supporting evidence and proposals need to be clearlyidentified. This will facilitate an assessment of research to be undertaken before any draftingcommences. Bear in mind that a business plan should be the end result of a careful and extensiveresearch and development project which must be completed before any serious writing of a plan shouldbe started. Under no circumstances should you start writing a plan before all the key issues have beencrystallized and addressed.

The more important the plan, the longer it will be and the longer it will take to complete. For mostplans, much more time will be spent researching than writing as demonstrated in the white paper on











Insights into Business Planning.

Recognize that the process of researching could be much more difficult than expected and considerseeking external help, sooner rather than later, for the most vital areas. If you do use outside assistance,make absolutely sure that that you don't hand over the planning of your business to external consultants.By all means contract out elements to experts in market research, sales planning, technology, financeand taxation but do not let them take control of the plan. If you do, you will have missed the benefits ofthe planning process and you may be deprived of the insights needed to effectively present andimplement the resultant plan.

To help you get started with your plan, review this Checklist for Preparing a Business Plan. Also, havea look at the Checklist on How NOT to Write a Business Plan to see the things you should not do !

Once your business's background, markets and commercial potential have been assessed, you shouldinitiate the planning process by defining the 3. Strategic Overview. on which your detailed plan will bebased.

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Introduction to Business PlanGuide:

Length of a Plan

PreviousNext

The page length of a business plan depends very much on the purpose of the plan and the type andstatus of the business being planned. For discussion on different types of plans and their lengths, seethe white paper on Insights into Business Planning.

Plan the Length of Your Plan

The overall length of a (very) comprehensive plan could be anything between 20 and 50 pagesexcluding appendices. A more basic plan might run from 5 pages up to 15 or even 20 pages.

When budgeting a length for your plan, go for the shortest possible plan consistent with yourbusiness's scale, objective of the plan etc. – go for quality rather than quantity! Between 20 and 30pages (excluding appendices) should be adequate for most businesses. If your plan gets too long, dosome ruthless editing and redrafting. If it is any consolation, it should be much easier to shorten a longplan than to lengthen a short one!

The following table suggests possible plan lengths for different situations based on this Guide'sstructure and that used by Free-Plan a comprehensive 150-page Business Plan Guide and Template:

Situation:

Target Number of Partial/Full Pages (excluding appendices)

Verysmall

servicesstartup

notseekingfunding

orsupport

Smallishbusinessseekingfunding

orsupport

Substantialstartupseekingventurecapital

Substantialexistingbusiness

not seekingfunding or

support

Substantialexistingbusinessseekingexternalfunding

A "long"summary

for asubstantial

business

Yourtargets

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Cover Page 1 1 1

Table ofContents

1 2 2 2

BasicInformation

1 1 1

1. Introduction toPlan

1 1 1 1 2 1

2. Summary ofPlan

1 1 2 2 3

3. StrategicOverview

1 1 2 2 2 1

4. Present Status 1 1 2 3 4 1

5.Products/ServicesDescriptions

1 1 2 3 4 1

6. Profiles ofTarget Markets

2 2 5 5 6 1

7. MarketingStrategies/SalesPlans &Projections

2 2 3 4 4 1

8. Technologyand R&D

? ? ? ? ?

9. OperationalPlans

1 1 2 3 4 1

10. Management& Administration

1 1 2 2 3 1

11. FinancialProjections

2 3 5 4 6 1

12. Funding 1 2 2

13.Implementation

1 1 2 2 3 1

14. Conclusion 1 1 1 1










Total Pages 14 20 35 34 48 10

Use Appendices

As no major section within your plan should exceed 6-8 pages, use Appendices to present detailed oradditional information which is summarized or referenced in the body of the plan. This reduces thelength of the plan. It also enhances readability and ensures that the reader does not get sucked intoexcessive detail.

If the appendices are very lengthy, consider binding them into a separate volume. This should makethe plan appear less intimidating and creates the opportunity to circulate the plan with or withoutappendices. If presenting the appendices as a separate volume, be sure to include a cover page(complementing that of the main plan) and a detailed contents list (number all pages in theappendices).

For further guidance, see Planning to Plan, Preparing a Short/Basic Plan and Table of Contents.

For further discussion on different types of plans and their lengths, see the white paper on Insightsinto Business Planning.




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Introduction to BusinessPlan Guide:

Preparing a Basic/ShortPlan

PreviousNext

By design, this Guide is aimed at helping new and established businesses toproduce comprehensive business plans, most probably, for raising externalfinance or for guiding management or securing internal approvals within alargish organization.

However, it can also be used to help produce (1) a basic/short plan for a verysmall or "home-based" business or (2) a "long" executive summary for a largerbusiness as follows:

Write a maximum of one page for each main section as defined in theTable of Contents except possibly for 6. Profiles of Target Markets and11. Financial Projections which could run to 2-3 pages.

1.

Use sub-headings in this Guide to determine matters to be addressedwithin each main section. For example, aim to cover each of thesub-headings within 2-3 paragraphs, along with simple tables andcharts. It is better to cover all key topics briefly rather than omit them.

2.

Using this approach, it should be possible to draft a plan of under 15-20 pages.See Length of a Plan for more guidance.

If planning to use Exl-Plan to help generate financial projections for this plan,look at one of the more basic versions such as Basic, Micro or Lite. Get moredetailed information and free trial downloads for these versions.

For further discussion on different types of plans and their lengths, see the

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Business Plan Guide:Front of Business Plan

PreviousNext

The front parts of most business plans comprise the following:

Cover page●

Contents list●

Basic Information about the business●

1. Introduction to Plan●

2. Summary of Plan●

Although these five items appear at the very start of a plan, their drafting maybe deferred until the Body of the plan and its Appendices have beencompleted.

Even if the Basic Information and 1. Introduction are drafted at an earlierstage, the 2. Summary of Plan should not be written until the entire plan hasbeen finalized.

Once you have addressed these front parts, you should advance to the Bodywhich contains the 'nuts and bolts' of your plan.

Note: Free-Plan, a comprehensive 150-page Business PlanGuide and Template based on this business plan guide, can bedownloaded for free here.

Additional HelpFor general guidance, refer to the white papers on How to Write a BusinessPlan and Insights into Business Planning.





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If you need more extensive assistance, consider using the Plan Write BusinessPlanner or Plan Write Expert Business Planner software packages.

See also Free-Plan, a comprehensive 150-page Business Plan Guide andTemplate based on this business plan guide. It can be used in conjunctionwith Exl-Plan, an Excel-based financial planner, to compile and present yourfinancial projections.

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Business Plan Guide:Cover Page

PreviousNext

The cover page at the very front of a securely-bound business plan is anexcellent opportunity to create a favorable image which reflects both thenature of the business and professionalism of the plan. A business logo with atasteful drawing or picture could look very attractive.

The text and layout of a cover page might appear as follows:

Strictly ConfidentialDate

Copy Number: ____

XXXBusiness

Name

Business Plan

Logo here

Picture of product





Business Plan Software & Guide: Cover of Business Plan

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XXX Business NameXXX Address

Tel No.: xxx Fax No.: xxxEmail: xxx Web: xxx

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Business Plan Guide:Table of Contents

PreviousNext

The contents list of your plan performs three critical functions:

Explains the scope and structure of the finished plan to readers.1.

Provides an index to facilitate access to specific sections of the plan.2.

Serves as a route map and guide during preparation of the plan.3.

The third function is often overlooked but it is critical to the successfulcompilation of a business plan. Your time will be very well spent drawing up adetailed table of contents for the plan prior to any writing. Build up this tableby progressively expanding main sections into subsections and evensub-subsections to cover all the key issues. This will allow you to:

Envisage the scale and scope of the plan.●

Test the logic of the plan.●

Determine the flow of text and ideas from one section to another.●

Define the detailed contents of the plan.●

Identify shortcoming in research and preparation.●

You should critically examine and fine-tune the contents list and allocate pagelengths to each section. This contents list can then be used as the basis foridentifying and assigning tasks to be researched, analyzed or discussed prior todrafting. See Planning to Plan for more guidance on this.

The importance of using the contents list as a guide when writing a businessplan cannot be overstated. It is your road map. Try going on a long journeywithout a good map and see what happens - you take wrong turns, you driveinto blind alleys, you get lost, you waste time, you have to double back, youmiss short cuts and, in the end, you may never get to your destination. Asimilar outcome could apply if you attempt to write a plan without firstcompiling a detailed contents list.

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The key to writing a good business plan is tocompile a sound table of contents before youstart writing.


The following is a suggested table of contents based on this Guide. Useappendices at the very back of the plan to hold the more detailed information,analyses, schedules etc. When compiling your plan, be sure to number allpages and index them on the contents page.


Cover Page

Table of Contents

Basic Information

1. Introduction to Plan

2. Summary of Plan

3. Strategic Overview 3.1 Vision 3.2 Mission 3.3 Values 3.4 Objectives 3.5 SWOTs 3.6 Strategies 3.7 Goals

4. Present Status 4.1 Background 4.2 Recent Progress

5. Product/Service Descriptions 5.1 General Descriptions 5.2 Key Features 5.3 Main Benefits 5.4 Pricing Plans 5.5 Competitors' Offerings 5.6 Competitive Assessment

6. Profiles of Target Markets










BusinessPlan

Guide


6.1 General Background 6.2 Size, Segments & Trends 6.3 Review of Competition 6.4 Customers/Users 6.5 Medium-Term Projections 6.6 Review of Market Potential

7. Marketing Strategies, Sales Plans & Projections 7.1 Key Marketing Strategies 7.2 Marketing/Sales Plans & Resources 7.3 Marketing/Sales Expense Projections 7.4 Sales Forecasts 7.5 Market Share Projections 7.6 Worst Case Scenario

8. Technology and R&D 8.1 Overview of Technology 8.2 R&D Plans 8.3 R&D Resources 8.4 R&D Expense Projections

9. Operational/Manufacturing Plans 9.1 Locations & Facilities 9.2 Operating Methods/Procedures 9.3 Capital Expenditure Projections 9.4 Operating Cost Projections

10. Management & Administration 10.1 Management Structure 10.2 Key Management Profiles 10.3 Administration & Systems 10.4 Head Count Projections 10.5 Overhead Expense Projections

11. Financial Projections 11.1 Key Assumptions 11.2 Income (P&L) Projections 11.3 Cash Flow Projections 11.4 Balance Sheet Projections 11.5 Ratio Analyses 11.6 Sensitivity Analyses 11.7 Overall Assessment

12. Funding 12.1 Funding Requirements






12.2 Funding Proposals

13. Implementation 13.1 First Year 13.2 Subsequent Years 13.3 Contingency Plans

14. Conclusion

Appendices 1. Introductory 2. Marketing 3. Operational 4. Finance

Additional HelpThe Plan Write Business Planner and Plan Write Expert Business Planner software packages containcomprehensive listings of all the topics that might appear in a business plan plus an outliner to help youstructure and tailor the contents of a plan. These can be used as the jumping off point for systematicallyentering text and compiling detailed schedules and projections.

If you intend to use Word to help produce your business plan, have a look at Free-Plan, acomprehensive 150-page Business Plan Guide and Template based on this business plan guide. It canbe used in conjunction with Exl-Plan, an Excel-based financial planner, to compile and present yourfinancial projections.




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Business Plan Guide:Basic Information

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Create a page-length table near the very front of the plan, ideally immediatelyafter the contents page, to list all the basic particulars about your business -contact details, regulatory items, names of advisers, principal financiers etc. -as per the example below.

Basic Information about XYZLegal name and status ofbusiness:

Directors/partners/proprietors:List and indicate positions.Distinguish between exec andnon-executive directors.

Address of main office:

Addresses of other offices:

Address of registered office:

Main telephone:

Main fax:

Main email

Web site:

Name and address of parentcompany:

Businessincorporation/registration date:

Businessincorporation/registrationnumber:

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Business tax referencenumber(s):

Insert any otherregulatory/license items here

Insert any otherregulatory/license items here

Main shareholders: List

Professional Advisers:Give contact names (andpositions), full addresses and otherdetails for each below

- Auditors

- Legal advisers

- Bankers

- Patent (IPR) attorneys

- Financial/tax advisers

- Any other key advisers

Insert any other key items here

Insert any other key items here

Note:Free-Plan, a comprehensive 150-page Business Plan Guide and Template based on this business planguide, can be downloaded for free here.




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Business Plan Guide:1. Introduction to Plan

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Before putting "pen" to paper, review the Checklist for Preparing a BusinessPlan.

Use this section to introduce the plan. Do not summarize the plan here: insteadwrite this in the 2. Summary of Plan section once the entire plan has beenfinalized.

Suggested Length & Structure:

This entire section should fit onto one page for all types of plans.

The Introduction to Plan could cover the following matters.

Briefly introduce the business entity (company, partnership, sole traderetc.) to which your plan refers. Use a maximum of two sentences toexplain what the business does or plans to do. For example:

This business plan relates to Xyz Inc which was establishedin 20XX and is engaged in the production, distribution andsale of frozen yogurt within the xx State.

●

Explain the purpose of or reason for the plan (e.g. guide management,raise funds etc.). For example:

The purpose of this plan is to help management raise $XYZ,000 in equity and loans to help finance expansion ofdistribution into adjacent territories and R&D on newproducts.

●

Indicate who wrote the plan and when. Mention any key external helpsecured from researchers, consultants etc. For example:

It was compiled by Xyz's management team led by Mr. XX,CEO, and assisted by ABC Financial Consultants during

●

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February-June 20XX.

Outline the scope and general structure of the plan by setting out thesequence of main sections as short bullet points like:

This plan is laid out as follows:

Section 2 below contains a summary of the plan.Sections 3 and 4 review the background, development ofthe business and current product service/ offeringsrespectively.And so on .....

●

Indicate that the plan is confidential etc. For example, include aparagraph like the following:

This document is confidential and has been made availableto the individual to whom it is addressed strictly on theunderstanding that its contents will not be disclosed ordiscussed with any third parties except for the individual'sown professional advisers. Investment in new and smallbusinesses carries high risks as well as the possibility ofhigh rewards. It is highly speculative and potentialinvestors should be aware that no established market existsfor the trading of shares in private companies. Prospectiveinvestors are advised to verify all material facts and to takeadvice from a professional adviser before entering into anycommitments. This plan is strictly for information only anddoes not constitute a prospectus or an invitation tosubscribe for shares. Forward-looking projections andstatements in the plan have been compiled by thepromoters for illustrative purposes and do not constituteprofit forecasts. The eventual outcome may be more or lessfavorable than that portrayed.

●

If necessary, get professional advice on more appropriatewording. If confidentiality is important, add a 'slot' for numberingall copies of the plan to its Cover Page and maintain a distributionregister.

Give contact details (name, position, address, phone, fax and email) forthe key person dealing with the plan.

●




Additional HelpFor general guidance, refer to the white papers on How to Write a Business Plan and Insights intoBusiness Planning.

If you need more extensive assistance, consider using the Plan Write Business Planner or Plan WriteExpert Business Planner. Free-Plan, a comprehensive 150-page Business Plan Guide and Templatebased on this business plan guide, can be downloaded for free here.




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Business Plan Guide:2. Summary of Plan

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IMPORTANT: Write this summary when your plan is at its final draftstage.

Hit the highlights and cover all key issues. Avoid detail – focus on matters ofstrategic importance to the business. If desired, cross-reference the reader tothe sections containing detailed text e.g. More details in Section XX.


Write the summary after the detailed plan has been drafted.

Limit this section to two or, at most, three pages. As a guide, the summaryshould never exceed 10% of the total number of pages (excludingappendices) in your plan. See Length of a Plan.

Address the needs and interest of the reader: what basic information does thereader need to get orientated or to become interested in the business? Considerdevising slightly different summaries for different categories of reader.

Use one short section or one/two paragraphs to summarize the content of eachmain section of the plan.

Instead of continuous flowing text, consider using bullet points like this:

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Start the summary on a new page immediately after 1. Introduction to Plan.●

Give this section plenty of thought and time as it is the most important single part of the entireplan.

●

Its contents should be very clear and interesting. Sell the business and its plans in a professionalmanner.

●

Be positive by avoid exaggeration. Do not include any material in the summary that is not alsocovered in the body of the plan.

●

If tabulating data, use simple, high-level tables. For example:●

This table was "pasted in" as picture from Exl-Plan, PlanWare's Excel-based financial planner. It is fully-integrated andlinked to cash flow forecasts and projected balance sheets and to a much more detailed project ions.

Use a chart or two to highlight key issues. A picture can be worth a thousand words, as thefollowing charts show.

●




These charts were "pasted in" as pictures from Exl-Plan, PlanWare's Excel-based financial planner.

Once the summary has been drafted, give the draft final plan to an honest, critical outsider to review.

Additional HelpFree-Plan, a comprehensive 150-page Business Plan Guide and Template based on this business plan



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guide, can be downloaded for free here.

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Business Plan Guide:Body of Business Plan

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The body of your plan should be spread over a series of sections. This Guideuses the following main sections:

3. Strategic Overview4. Present Status5. Product/Service Descriptions6. Profiles of Target Markets7. Marketing Strategies, Sales Plans & Projections8. Technology and R&D9. Operational Plans10. Management & Administration11. Financial Projections12. Funding13. Implementation14. Conclusion

These follow on from the 1. Introduction to Plan and 2. Summary of Plan. Theorder and scope of the sections within your plan should be decided at the veryoutset when compiling the Table of Contents list of the plan.

Consider starting each main section on a new page even though this mightappear to increase the length of your plan.

Detailed material relevant to a particular section should be placed in anAppendix at the very back of the plan. This ensures that the flow of your planis not disrupted by excessive detail.

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Additional HelpFor general guidance, refer to the white papers on How to Write a Business Plan and Insights intoBusiness Planning.

If you need more extensive assistance, consider using the Plan Write Business Planner or Plan WriteExpert Business Planner software packages.

See also Free-Plan, a comprehensive 150-page Business Plan Guide and Template based on thisbusiness plan guide. It can be used in conjunction with Exl-Plan, an Excel-based financial planner, tocompile and present your financial projections.




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Business Plan Guide:3. Strategic Overview

PreviousNext

Limit this entire section to two or absolute maximum of three pages byfocusing on major and long-term issues. Use succinct, affirmative statementsand make every noun, adjective and verb important.

After the summary section, this is probably the most important element in theentire plan as it sets the direction, tone and framework for the detail thatfollows. If the proposed strategies and their rationale are flawed then thewhole direction of the business may be wrong.

To compile this section, considerable research needs to have been completedparticularly on markets, competition and sales potential. See 6. Profiles ofTarget Markets.

For further guidance, see the white papers on Devising Venture Strategies andDeveloping a Business Strategy.

Also, have a look at the free Online Strategic Planner, which could be used tohelp draft this entire section as illustrated by the Sample Strategic Plan.

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Allow 1-2 pages (excluding the SWOT table). Keep under one page for abasic/short plan.

The subsections below are for general guidance only. They could result insome undesirable duplication or overlapping of proposals and ideas.Accordingly, you may prefer to:

Amalgamate some of them (e.g. Vision & Mission or Values &Objectives).

●

Use less obtrusive sub-headings like Vision:●

Delete all sub-headings and cover all relevant matters in a series ofshort paragraphs.

●

Note: Free-Plan, a comprehensive 150-page Business Plan Guide andTemplate based on this business plan guide, can be downloaded for free here.

3.1. Vision

Describe what your business will look like in, say, five years time. Indicate its likely size and the nature,breadth and depth of its operations etc. For example, start your vision with the following:

By 20XX, Xyz will be engaged in xx (activities). It will be selling xx (offerings)to a customer base comprising xx. It expects to have staff of xx mainlyengaged in xx (activities) and located at xx. Annual sales could be xx and netincome could reach xx. A key feature of Xyz will be its emphasis on xx tomaintain its competitive advantage. And so on .....

For further guidance, see the white paper on Developing a Business Strategy. Also, have a look at thefree Online Strategic Planner that could be used to help draft this entire section as illustrated by theSample Strategic Plan.

3.2. Mission

In one succinct paragraph, describe the central purposes and activities ("mission") of your business.Explain concisely what the business is about - along the lines of a so-called "elevator pitch". Forexample:

Xyz designs, develops, manufactures and markets xx products/services for saleon the basis of xx features to meet the xx needs of xx customer groups via xxdistribution channels in xx geographic areas. It intends to expand/developnew/additional products/markets/channels by means of xx .......






3.3. Values

Describe the business's values and the ethical standards it will apply in dealings with stakeholders,customers, suppliers etc. A sentence or two should suffice for most businesses. If your organization isNFP (not-for-profit), you may wish to expand on its values using bullet points.

3.4. Objectives

Briefly, explain the promoters' (or shareholders', management's) underlying long-term objectives insetting up (or expanding) the business. For example:

Get rich?■

Build a big business?■

Support local community?■

Develop a natural resource?■

Mobilize help for a deprived group?■

Create a pension fund for managers?■

Create employment for self or others?■

Exploit an invention?■

Diversify or integrate?■

Get a stock market quote?■

Defend or enhance the business?■

For further guidance, see the white paper on Developing a Business Strategy.

3.5. SWOTs

SWOTs ( Strengths, Weaknesses, Opportunities and Threats) are mentioned here to highlight theimportance of addressing them in the 3.6. Strategies subsection that follows.

What are the business’s real SWOTs? Be very honest about identifying any major strengths,weaknesses and threats and justify opportunities based on market analysis and research rather than onwishful thinking or supposition.

Internal ExternalStrengths :

Opportunities :

Weaknesses :

Threats :

It may not be appropriate to tabulate SWOTs within the final version of your plan in view of the fact



that your proposed strategies presented in 3.6 Strategies below are designed to resolve shortcomingsidentified in this table. One solution would be to add a closing subsection to this main section to serveas a wrap-up statement (or an overall assessment) that describes how the proposed strategies/plans will:

- built on the business's key strengths (name them)- resolve its internal weaknesses (name the areas)- fully exploit its external opportunities (identify them) and- avoid major external threats (explain how).

Alternatively, an item along these lines could be included as part of the overall 14. Conclusion towardsthe back of the plan.

For further guidance, see the white papers on Devising Venture Strategies and Developing a BusinessStrategy.

3.6. Strategies

Use bullets to highlight up to eight (or so) key strategies (actions, programs, projects, operating methodsetc.) in relation to major functional areas - markets, sales, products/services, technology, finance,management, operations etc.

Be sure you are presenting realistic, medium-term strategies and not merely short-term tactics. Thefollowing table highlights differences between strategic and tactical issues when planning a holiday:

Strategic TacticalWhen to go ? What to pack ?Where to go ? How to get to airport ?Who to go with ? Where to go on third day ?How to travel ? Hire car for a day ?What budget ? What presents to buy ?How long to go for ? When to use taxis ?

Clearly, it would not make much sense when planning a holiday to address the tactical issues withoutfirst having resolved the strategic matters. This also applies to strategic planning for a business plan.

Your strategies are critically important, as they become the road map for all the (tactical) detailpresented in the balance of the plan. In essence, set out the basic strategies in this subsection and thenuse the remainder of your plan to flesh out the detail.

Use 3.5. SWOTs above to prompt thinking on internal and external issues as indicated in the tablebelow and explain how your plan will deal with them in strategic terms.

Internal External.. build on strengths .. exploit opportunities

.. resolve weaknesses .. avoid threats

Here are some possible strategies for a newly formed handbag designer/producer/distributor:



Markets:

Target high-income earners in the 18-25 age group●

After two years expand into the 25-35 age group●

Sales:

Initially, sell directly via own and third-party web sites●

Progressively appoint distributors and agents to target specialist retailoutlets within xx States

●

Establish a foothold in the xx Country by means of a joint venture.●

Offerings:

Limit initial offerings to four main designs of handbags●

Extend range by reselling handbags produced within xx Country by20XX

●

Extend range to include "weekend-size" cases●

Design:

Update designs on annual basis with particular reference to xx trends●

Operations:

Develop a networks of sub-contract manufacturers●

Use third parties for distribution●

Operate from rented space at xx City●

Management:

Build up a strong experienced team (4) within first year●

Appoint high-caliber non-execs (2) to board●

Finance:

Raise external equity of $xx in two rounds in years 1 and 2.●

For further guidance, see the white papers on Devising Venture Strategies and Developing a BusinessStrategy.

3.7. Goals/Targets

Summarize the prime goals/targets - for sales, profits, employment, market shares etc. – to be achievedwithin the life of your plan i.e. three to five years.

For example, the handbag firm might have the following third-year targets:

Achieve annual sales of at least $2 million■

Net profit margin of 5%+■



Ten main outlets in about xx Countries/States■

Offer at least ten significant ranges■

Recognition as a high fashion designer.■

For further guidance, see the white paper on Developing a Business Strategy. Also, have a look at thefree Online Strategic Planner that could be used to help draft this entire section as illustrated by theSample Strategic Plan.

Additional HelpFor further guidance, review the white papers on Devising Business Strategies and Developing aStrategic Business Plan. You can use the free Online Strategic Planner or view the Sample StrategicPlan.

If you need assistance with the assessment of possible strategies and the development of strategic plans,have a look at the following expert-based software packages:

Quick Insight for assessing business proposals (for smaller businesses).●

Business Insight for evaluating strategic and marketing plans (for larger businesses).●

Plan Write Expert Business Planner which combines a business plan writing tool with an assessorof business proposals.

●

Expert Strategic Planning ToolsTitle Description For Whom Info Demo Buy

(US$)*

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Expert system fordeveloping strategiesand tactics, andpreparing acomprehensive salesand marketing planfor a tech-basedbusiness.


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Expert system fordetermining optimalpricing and writing acomprehensivepricing plan.


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Business Plan Guide:4. Present Status

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Use this main section to review the background to your business andsummarize achievements and performance (financial, sales, technical etc.) todate.


For a start-up, this section could be covered in 1-3 pages. Allow more pagesfor an established business and relegate detailed material to appendices.


4.1. Background

Review the history of the business (or the origins of the idea if a start-up).Introduce the original promoters/shareholders in the business and explain inbroad terms how the business evolved in terms of products/services,customers/markets, funding, management, R&D etc. Consider constructing asimple, short table showing the key events in the history of the business.

4.2. Progress to Date

Explain the development of the business to its present status from operational,sales/marketing, R&D and financial perspectives.

Make use of simple, high-level tables and charts to illustrate trends. Relegatedetailed material to appendices and/or use footnotes to discuss issues, eventsetc. in greater detail without disrupting the flow of the main text.

4.2.1. Sales & Marketing

Use simple tables to help summarize historic sales growth, customer/product

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segmentation, market shares, key product volumes, prices achieved etc.

Here is a simple table showing historic sales:


Table X – Sales Analysis (20XX-20XX)

Years to end xxMonth: 20XX($000)

20XX($000)

20XX($000)

20XX *($000)

Product AA Product BB Product CC Total sales Growth rate ( per year) N/a

* First six months are actuals. Estimates used for last six months.

In addition, charts can be very effective at summarizing data:

Chart xxx - Historic Sales Analysis for Four Years ($000)

Explain key marketing/sales strategies and tactics. Describe major events in relation to marketing, sales,distribution, promotion, sales management, agencies/partners and so on. Place details in appendices.

Be sure to mention the general economic climate and the performance of competitors during the reviewperiod.

Indicate the current order book in value/volume terms and/or relative to capacity, and offer a view onthe immediate outlook (i.e. over the next six months) for the business and its main markets.

4.2.2. Operations & Management









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Review the operations of the business in terms of activities, facilities and resources used.

Include a short discussion and high-level tables covering employment, output levels, capacity growth,utilization etc.

Describe key capital investments.

Review developments in management and systems.

Identify key managers (and directors). If profiling them, limit yourself to 2-3 lines for each and referreader to 10. Management & Administration and/or an appendix for more details.

4.2.3. R&D

Review progress with R&D in terms of projects, resources and costs. Indicate the status of projects andexpected completion dates.

A simple table along the following lines could be used to summarize the foregoing:

Project Date Started ProjectedFinish Date

% Completed MainResources

Expenditure toDate

($000)

Mention any patents or planned patent filings.

4.2.4. Finances

For an established business, present a high-level synopsis of historical financial performance coveringincome statements, balance sheets etc. Again, use very simple tables or charts and present details inappendices or accompanying audited accounts. Highlight and explain key events. Face up to any majorupsets and discuss them in an honest but positive manner.

In the case of a start-up, present a synopsis of the business's latest (estimated) balance sheet and identifymajor ongoing expenditure items and amounts (i.e. the cash burn rate).

In all cases, give information about share holdings and any options outstanding – list shareholders,dividend policies etc. Use an appendix to cover the detail.

If relevant, review the budget and year-to-date performance for current year and summarize these insimple tables. Indicate the expected out-turn for the remainder of the current year and highlight keyassumptions.

4.2.5. Other Developments

If appropriate, use this subsection as a catchall to mention other major developments such as awardsreceived, customer coups and so on.







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Business Plan Guide:5. Product/Service

Descriptions

PreviousNext

Keep descriptions of offerings (products and/or services) relatively short andconfine them to broad groups.

Briefly explain what they do and who will use them. Indicateadvantages/benefits they offer or the needs they meet. Avoid getting intotechnical terms and details – put this in appendices. Summarize any producttest results and product approvals (secured/needed).

Introduce competing products/services and explain what makes yours special.

Append any brochures or price lists to the plan (as an annex).

Try to add a few pictures to the text and, if practicable, offer to make availablea sample product or mock-up. Consider augmenting this with a good-qualityvideo or computer-based slide presentation.


Two to four pages should suffice for this section. Confine to one page for abasic/short plan.

The subsections below are for general guidance only. They could result insome undesirable duplication or overlap. Accordingly, you may prefer to:

Amalgamate some of them (e.g. Description & Features).●

Use less obtrusive sub-headings like General Descriptions:●


●

Note: Free-Plan, a comprehensive 150-page Business Plan Guide and

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Template based on this business plan guide, can be downloaded for free here.

5.1. General Descriptions

Devote three/four paragraphs to explaining what your offering are and do. Explain where and how theyare used, and why customers need them and (will) buy them. Avoid detail and minimize technicalterms.

5.2. Key Features

Introduce the key features of the proposed offerings. Use bullets or simple tables.

If relevant, present outline specifications or internal/external test results. Mention any certificationssecured/needed.

5.3. Main Benefits

Identify the main benefits for users of your offerings in terms of savings, convenience, quality and soon. Use bullets to list benefits. Take care to distinguish between features and benefits. For example:

Features Benefits(Related to Real Needs)

Our recorder weighs only 6 oz. Our recorder can be carried in apocket.

Our software includes extensivewizards, online help and manuals.

Our software is easy-to-use andwell-supported.

Our holiday homes havedishwashers, washing machines,dryers etc.

Our holiday homes are fullyequipped with labor-savingappliances.

Our vehicles have anti-roll bars, aircushions and four-point belts.

Our vehicles are extremely safe.

For some industrial products, it may be worthwhile including a (simple) cost-benefit or return oninvestment analysis. For example, explain how customers could get a payback on their investmentwithin xx months/years as a result of using your offerings.

Some further considerations:

Demonstrate that your offerings fulfill a real (rather than perceived) need in such a way that theirbenefits are attractive to customers/users. This is your value proposition.

1.

If you cannot address either an unresolved "pain" or "longing" that prospective customers arecurrently experiencing then it is doubtful whether they will see the benefits of your offerings.

2.

Identify your offerings' Unique Selling Proposition (USP) in terms of benefits that you can easilyand persuasively communicate to prospective customers/users.

3.

Throughout the balance of your plan, strive to sustain these USPs by maintaining worthwhile4.





competitive advantages through marketing, cost control, innovation, delivery, performance,quality or whatever.

5.4. Pricing Plans

Outline your proposed pricing plans. Cover markups, volume discounts, commissions etc. Use simpletables and place any detailed price lists in an appendix.

If relevant, explain the pricing/discount structure within your targeted distribution channels. Forexample, show how markups are applied as your offerings move along the distribution chain.

5.5. Competitors' Offerings

In this subsection, concentrate on describing your competitors' offerings as distinct from discussingtheir business activities. First, identify your main direct and indirect competitors and then introducetheir offerings.

If you have no direct competitors, explain how prospective customers are likely to react to yourofferings and relate your offerings to nearest equivalent competitors or solutions. If you cannot do this,it is possible that your offerings are solutions in search of problems!!

Highlight similarities and differences between your offerings and competitors' in terms of price, specs,quality, availability, design, features etc. Summarize using simple tables and place supporting analysesin an appendix.

5.6. Competitive Assessment

If appropriate, use this subsection to review the competitive advantages (and drawbacks) of yourofferings relative to competition and to explain why your offerings will be (more) attractive toprospective customers/users.

Additional HelpIf you need 'expert' help with assessing your product/service offerings relative to the competition andcustomer needs, have a look at the Quick Insight (for smaller businesses) and Business Insight (forlarger businesses) software packages.

Expert Strategic Planning ToolsTitle Description For Whom Info Demo Buy

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Business Plan Guide:6. Profiles of Target

Markets

PreviousNext

In this section, indicate market size, segments, trends, competition anduser/customer profiles. Also, assess market shares and present medium-termprojections for relevant segments.


Allow up to 6 pages for this very important (and frequently ignored orunderrated) section. Use about two pages for a basic/short plan and cover keyissues in a series of short paragraphs and simple tables. Put detailed materialin an appendix.

We recommend that you adhere to the suggested subsections to ensure thatall key issues are covered.

In most cases, it is very desirable that all detailed market research (field and/ordesk) and analysis be completed before this section is written. If researchreports are available refer to their detail in appendices or include them asannexes.

This is a very difficult section to prepare especially for start-ups or establishedbusinesses diversifying in new (to them) markets. These difficulties will becompounded, due to an absence of any reliable data or evidence of likelydemand, for businesses entering completely new markets or launchingradically new offerings. Nonetheless, this section is critical as it underwritesthe business plan and demonstrates that the promoters have done theirhomework and know their marketplaces (at least as well as the incumbentplayers or other new entrants). If this section is unclear, vague or superficial, itbegs the question as to whether there might be any real, sustainable demandfor the proposed offerings.

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If several disparate markets are being targeted, subdivide each of the subsections within this mainsection to cover these markets as illustrated in 6.1 General Background below. Alternatively, set thefirst subsection to refer to “6.1. Market Aaaa” and then use sub-subsections to cover key issues like:

6.1.1 General Background 6.1.2 Size, Segments & Trends 6.1.3 Review of Competition 6.1.4 Customers/Users 6.1.5 Medium-Term Projections 6.1.6 Review of Market Potential

Repeat this for “6.2. Market Bbbbb” etc. and add a final main section as “6.X Overall Review” thatsummarizes the individual market reviews.

When you have completed this section, you should revisit 3. Strategic Overview and critically examineand challenge its contents based on the results of your market research.

6.1. General Background

Use this subsection to set the scene for more detailed analyses. For example, review the history of themarket and highlight the key changes and trends. Feel free to quote external market research reports tohelp explain the general attractiveness of the marketplace.

In this subsection, move from the very general to the very particular and distinguish between total,available and served markets. Here is an example of what we mean by this:

The total world market for widgets is expected by most market analysts togrow from $300 million in 2008 to $1,200 million in 2012. Within this total, itis estimated that 60% of this market will be open to new entrants and that10% of this will be located within the geographic areas to be ultimatelyserved by our business. On this basis, the projected theoretical size of ourtarget market might be worth about $72 million.

If multiple markets are being targeted, use separate sub-subsections for each:

6.1.1. Market Aaaaa6.1.2. Market Bbbb

View a statement along these lines as the starting point for the following subsections that explore indetail the market segments to be specifically targeted by the business. Under no circumstances, skipthis work by simply stating that your business intends to secure 10% of the target market!!










6.2. Sizes, Segments & Trends

Describe the specific markets where the business operates and/or plans to enter. Explain how they haveevolved and how they are segmented. Explain any historic shifts in consumer, product and technologytrends and review any regulatory or structural restrictions on trade.

Claiming to have a unique offering is not an excuse for not doing a market assessment based oncomparable indirect offerings. If target markets cannot be assessed then it is improbable that they can besold into.

Use simple tables and charts to illustrate key points and to analyze structures and trends. Place detailedanalyses in an appendix.

Here is an example of a simple table reviewing the size of key segments within an established marketduring the last four years:

Key Segments 20XX($m)

20XX($m)

20XX($m)

20XX($m)

Segment A Segment B Segment C Other segments Total market

Highlight the segments you are targeting and drill down into them as illustrated in this chart whichbreaks the total market into excluded, unserved and served low- and high-priced segments. Discusschannels of distribution, promotional methods and marketing expenditure levels within the servedsegments.

In some cases, it will be very difficult to analyze or segment a market because it is new or poorlyresearched. In these circumstances review proxy or adjacent markets to gain insights in demand forsimilar offerings or related solutions and use the results to make inferences about the target markets.

Another method that could be used for business-to-business offerings would be to identify or quantifykey prospective purchasers within the target market, estimate the theoretical value of their purchases



and then scale this back to take account of the early purchasers and so on. Here is how this might beapproached:

Variable Worst Case Best case MostLikely

Estimated number of likely prospects 200 300 250Theoretical value of "typical" contracts/prospect ($000) 50 100 75Theoretical size of market ($000) 10,000 30,000 19,000Time interval for market to develop (years) 5 7 6Annualized market size after 2-4 year ($000) 2,000 4,300 3,200Guesstimated market size during initial growth phase ($000) 500 1,000 750Estimated actual current market size based on pilot sales ($000) 50 50 50

Whilst this assessment is very speculative, a major benefit of having a limited number of prospects isthat they can be individually identified for marketing purposes.

This "bottom-up" approach could also be used to help determine the size of a market within a heavilytrafficked market segment. For example, if planning to open a restaurant within an established majorshopping center, it should be possible (by simple observation) to assess the number of existing outlets,their table numbers, utilization rates, menu prices and favorites and thereby determine the size andsegmentation of this local market, in value and volume terms.

In other circumstances, the market may be so big or broad that measurement might appear pointless, forexample, the world market for video downloads or the US market for medical drugs targeting specificdiseases. Here are two approaches that could assist:

Identify comparable-sized businesses and assess their size and progress within the market. Byadding together their combined sales, an assessment can be made of the size and structure of therelevant market segments.

1.

Assess the cost of customer acquisition or conversion rates and relate this to planned marketingexpenditure, strategies and plans. For example, in the downloaded software business, theconventional wisdom is that about 1% of downloads result in a sale. Based on this yardstick, theamount of traffic required to secure a predetermined level of sales could be assessed. In turn, thelikely sources of this traffic (e.g. web sites, directories etc.) could be identified and plannedexpenditure on acquiring traffic passing through these sources could provide a basis for sizingand segmenting the relevant channels.

2.

Never ever base your market assessment on superficial generalizations like "According to well-knownresearch firms, our market is growing at 100% a year and will reach $10 zillion by 20XX".

6.3. Review of Competition

Introduce the main competitors (or near-competitors if targeting a completely new market area) andprofile them – highlight their evolution, scale and activities, and market shares. Briefly assess theirSWOTs.

Show how their market shares have evolved and indicate their current standing in the market.



Discuss pricing and non-price issues.

Describe the channels of distribution and promotional methods used by competitors, and indicatetypical promotional expenditure levels.

Place detailed information in appendices.

6.4. Customers/Users

Profile customers/users and explain how/why/when/where they buy.

Segment possible customers/users based on their demographics/needs. Review their buying habits andconsider the impact of broad economic issues (past and future) on the frequency and value of purchases.

Discuss price, quality, promotional, distribution channel issues etc. and how competitors' offerings arepositioned and perceived from a customer/user perspective.

Quantify numbers of prospective customers/users and assess their consumption/ purchase rates (e.g.amount/year, amount/purchase, purchases/year and so on). Indicate how customer/user patterns couldchange in the future. This should link back to 6.2. Sizes, Segments & Trends above.

Present the key findings of any consumer/user research that has been conducted.

Note: Use the foregoing assessments to help clarify and further refine the market segments yourbusiness will be targeting. For example, if your business is only targeting the premium end of themarket you should sub-divide market segments to take account of this. Likewise, if you are only sellingthrough specialist outlets. Think of this process as being similar to peeling an onion - the more layersyou remove, the closer you get to the heart of the matter!

6.5. Medium-Term Projections

Use simple tables to show how market sizes, segments and shares are likely to move in the future afteryour entry/growth. For completeness, incorporate anticipated high-level sales projections for yourbusiness in these tables even though these will not have been derived until 7. Marketing Strategies,Sales Plans & Projections.

Summarize briefly the main economic factors and variables underpinning your market projections.Explain any assumptions about possible shifts in economic, consumer, product and technology trends.

Here is an example of a simple table projecting the size of key segments within an overall market. Thistable might have been derived from backup tables projecting numbers of customers/users within eachsegment along with consumption rates and unit prices for each segment.

Key Segments 20XX($m)

20XX($m)

20XX($m)

20XX($m)

Segment A Segment B



Segment C Other segments Total market

Take the segments you are targeting and, if practicable, drill down into them to arrive at even morespecific market projections as illustrated in this chart:

Finally, consider providing alternative projections based on "best" and "worst" case scenarios that mightreflect alternative assessments of future economic and competitive conditions. Confine these projectionsto very simple tables and brief explanations as to how and why they were derived.

Place detailed analyses in an appendix.

6.6. Review of Market Potential

This section is important especially if you are targeting multiple markets as you can use it to summarizefindings and projections for the individual markets. Even if only targeting a single market, you coulduse it to summarize why the proposed target market is attractive to your business.

Additional HelpThe Quick Insight software package is an expert system for evaluating business proposals. It could helpassess your position relative to competition and identify possible strategies. The more powerful andsophisticated Business Insight will allow you to explore your market position and analyze thecompetition in considerable detail as a precursor to devising and testing possible marketing strategies.

The Plan Write Market Planner is very suitable for developing a detailed marketing plan to complementa business plan.

Note that the Plan Write Business Planner and Plan Write Expert Business Planner* both containextensive sections devoted to the marketing aspects of a business plan.

* The Plan Write Expert Business Planner is effectively an integrated combination of Quick Insight and Plan Write Business Planner.




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Body of Plan - 3.Strategies - 4.Status - 5.Offerings - 6.Markets - 7.Sales - 8.Technology - 9.Operations - 10.Manage'nt - 11.Financials - 12.Funding - 13.Implement

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Business Plan Guide:7. Marketing Strategies,

Sales Plans &Projections

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This section follows on from 6. Profiles of Target Markets and presents yourproposed marketing strategies and detailed sales plans and projections.


· Devote up to 3-5 pages for this section. Allow about two pages for abasic/short plan by covering all key issues below in a series of shortparagraphs.

· We recommend that you adhere to the suggested subsections to ensure thatall key issues are covered.

In simple terms, you need to cover the 4Ps - product, price, place andpromotion - and compile detailed revenue and marketing cost projections forinclusion in 11. Financial Projections.

Avoid at all costs , generalized statements like "we aim to achieve xx% of thexx market within three years". Instead, build up your projections from soundanalysis and detailed assumptions about sales volumes to be achieved atcustomer/outlet levels. By way of a conclusion to this section, you couldexplain that these projections, if realized, could result in specified marketshares being attained. To propose that your business will achieve a specifiedmarket share without relevant, detailed analysis and planning betrays a verypoor appreciation of the basics of business and marketing.

Note: Free-Plan, a comprehensive 150-page Business PlanGuide and Template based on this business plan guide, can be

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7.1. Key Marketing Strategies

Summarize your proposed high-level marketing and sales strategies for market entry/development bydescribing the most critical actions and programs. These could include the following:

Key markets e.g. For 200XX we will concentrate on the xx market and in the following year weplan to open outlets in the xx market.

●

Primary products e.g. From the outset we will offer ten product variations.●

Main sales methods e.g. We will use a combination of sales agents and online promotion.●

You only need to present high-level, scene-setting strategies to explain the fundamentals: use thebalance of this section to present the detail.

7.2. Marketing/Sales Plans & Resources

You should cover the following:

What are the initial market entry/development tactics?●

How will your business market its products/services and sell them to customers? Indicate plansfor marketing, selling, promotion, advertising, representation etc.

●

How will your products be presented to customers? Discuss packaging, physical distribution,sales support and product support and forecast the related costs.

●

Following on from 5.4. Pricing Plans in 5. Product/Service Descriptions, explain the shorterterm pricing policies and credit terms (be realistic!). What discounts will apply and to whom?Will there be bad debts or returns, and what provisions should be made?

●

What will be the end-user prices? Assess the competitiveness of your business's offerings interms of price, quality, features etc. at the level of sales outlets or end-users.

●

How will you deal with the competitors? How might they respond?●

What are your contingency plans in the event of sales targets not being fully realized?●

7.3. Marketing/Sales Expense Projections

Based on 7.2 Marketing/Sales Plans & Resources above, use this section to present and explainprojections for marketing/sales personnel and expenses. A table along the following lines could be usedas a summary:

Years to end xxMonth: 20XX 20XX 20XX 20XXHead count - marketing staff Head count - sales staff Head count - total marketing & sales





Average payroll cost/person ($000) Total payroll cost ($000) Travel & subsistence expenses ($000) Marketing/sales expenses - XX ($000) Marketing/sales expenses - XX ($000) Marketing/sales expenses - XX ($000) Marketing/sales expenses - XX ($000) Marketing/sales expenses - XX ($000) Total payroll & expenses ($000)

If addressing multiple markets or selling disparate product ranges, you should probably compileseparate tables for each and then aggregate them.

Place detailed calculations and explanations in an appendix.

7.4. Sales Forecasts

Use this section to present sales (volumes and prices) projections for your various market segments andproducts/services.

In arriving at the projections, account needs to be taken of the market-size projections in 6.5.Medium-Term Projections in 6. Profiles of Target Markets, the proposed marketing/sales plans andthe impact of competition as well as customer/user buying patterns, conversion rates and lead times.

Projections should be monthly (for at least one year ahead and especially if the business is seasonal) andeither quarterly (much better) or annual thereafter.

Use a simple table along these lines to present key data. Include details in appendices.

Years to end xxMonth: 20XX 20XX 20XX 20XXKey Offering/Market #1- Sales volumes- Selling pricesTotal Sales ($000)

Key Offering/Market #2- Sales volumes- Selling pricesTotal Sales ($000)


Combined total sales ($000)

As a further example, the following table and chart showing shorter term projections for 4 productgroups were copied and pasted directly from Exl-Plan's built-in Textual Summary Report (more



information) as “pictures”.

This table was "pasted in" as picture from Exl-Plan, PlanWare's Excel-based financial planner.

This chart was "pasted in" as picture from Exl-Plan, PlanWare's Excel-based financial planner.

Finally, review your marketing and sales plans and ask how confident are you that the projected saleslevels and market shares will be achieved. If in doubt, develop and (briefly) present alternativescenarios and approaches in 7.6 Worst Case Scenario below.

7.5. Market Share Projections

Refer back to the 6.5. Medium-Term Projections in 6. Profiles of Target Markets for target marketsand the 7.4. Sales Forecasts above and set out simple tables (or charts) showing how your business'smarket share will evolve and seek to justify this based on the caliber of your offerings, marketingstrategies, sales plans and expenditure. For example, explain clearly why you might expect to secure a10% market share while accounting for just 2% of your competitors' combined marketing expenditure



and effort.

7.6. Worst Case Scenario

Consider a "worst case" scenario where sales volumes and/or prices undershoot your primary 7.4. SalesForecasts above. Explain the basis for this scenario and summarize its implications in a simple table.

Years to end xxMonth: 20XX 20XX 20XX 20XXKey Offering/Market #1- Sales volumes- Selling pricesTotal Sales ($000)



Combined total sales ($000)

Referring back to the 6.5. Medium-Term Projections in 6. Profiles of Target Markets for targetmarkets and the primary 7.4. Sales Forecasts above, discuss the impact of this "worst case" scenario onthe 7.5. Market Share Projections above.

Additional HelpThe Exl-Plan range of Excel-based financial planners can be used to generate detailed sales forecastsand related cost budgets as part of the process of developing fully-integrated financial projections(income statements, cash flows, balance sheets etc.) for up to seven years ahead.

The Plan Write Market Planner is very suitable for developing a detailed marketing and sales plan tocomplement a business plan. The Plan Write Business Planner and Plan Write Expert Business Plannerboth contain extensive sections devoted to the marketing and sales aspects of a business plan.

The Quick Insight software package is an expert system for evaluating business proposals. It could helpassess your position relative to competition and identify possible strategies. The more powerful andsophisticated Business Insight will allow you to explore your market position and analyze thecompetition in considerable detail as a precursor to devising and testing possible marketing strategies.




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Business Plan Guide:8. Technology and R&D

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If R&D is relevant to your business, use this section to describe progress todate, plans and resources. Highlight any technological advances orachievements.


About 2-3 pages should suffice. Keep under one page for a basic/short plan.

Put all detailed or technical material in an appendix.


Amalgamate some of them (e.g. R&D Plans and R&D Resources).●

Use less obtrusive sub-headings like R&D Plans:●


●


8.1. Overview of Technology

Introduce the key technology trends/developments within your industry orproduct area and explain how you are responding to them.

Summarize existing/planned patents and describe the ownership status of allintellectual property rights (including trademarks, copyrights etc.).

Keep technical details to the minimum and explain unusual terms as soon asused. Use simple drawings or flow diagrams to help describe any complexissues.

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8.2. R&D Plans

Summarize R&D expenditure to date (if not done in 4.2. Progress to Date at 4. Present Status).

Specify future expenditure plans. Identify milestones or specific projects to be completed. Whereappropriate, provide short economic justifications for major projects.

Use simple tables and place backing material in appendices. For example, the following table could beused to summarize key projects:

Title Description StartDate

FinishDate Remarks Priority/

Sequence

8.3. R&D Resources

Use this subsection to identify the key resources needed to fulfill the 8.2. R&D Plans outlined above.

What technical expertise has been acquired by the business or is needed in the future? What are thequalifications/backgrounds of technical staff and external advisers or collaborators? Whatvacancies/needs will arise in the future and how will they be filled?

Again, use simple tables along the lines of the following:

Title Key Resources Internal(man years)

External(man years)

ProjectedCost

($000)

The foregoing table could provide the basis for the following staffing projections:

Years to end xxMonth: 20XX 20XX 20XX 20XXHead count - Project #1 Head count - Project #2 ........ Total head count

This data could also be presented in the following format linked to staff grades:

Years to end xxMonth: 20XX 20XX 20XX 20XXHead count - Grade A Head count - Grade B




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........ Total head count

Finally, the following payroll cost table could be constructed:

Years to end xxMonth: Payroll Cost($000/person)

20XX($000)

20XX($000)

20XX($000)

20XX($000)

Payroll cost - Grade A Payroll cost - Grade B ........ Total payroll cost

These tables have been presented for illustrative purposes. In practice, they may be more appropriatelylocated in an appendix.

8.4. R&D Expense Projections

Use this subsection to pull together the financial implications of 8.2 R&D Plans and 8.3 R&DResources above. Work through the detail in an appendix and summarize in a simple table along thefollowing lines:


20XX($000)

20XX($000)

20XX($000)

Key Project #1- Internal payroll- External consultancy- Other expensesTotal - Key Project #1



Total R&D payroll & expenses ($000)

Where relevant, cost justify key projects by indicating their expected return-on-investment. In simplestterms, this could be the payback interval e.g. if expenditure of $50,000 could generate incremental grossprofits of $25,000 a year, the payback would be 2 years.







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Business Plan Guide:9. Operational Plans

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Cover all aspects of distribution, service provision, support and/or productionoperations within this section.


Depending on the nature and scale of your business,this section may need2-4 pages. Keep under one page for a basic/short plan.


Amalgamate some of them.●

Use less obtrusive sub-headings like Locations & Facilities:●


●

9.1. Locations & Facilities

Indicate locations and main facilities. Describe plant/office/facilities capacity& utilization (past, present and future).

Where multiple locations are involved, use simple tables to summarize them.For example, a home-delivery pizza business might cover the following:

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Description ofPremises Address Floor

Area

TakeOut

(Y/N)?Main In-store Facilities Owned or

Leased?

9.2. Operating Methods/Procedures

Describe major elements of production/ operations/ distribution. Use simple diagrams to illustrateprocesses or complex relationships.

For example, in the case of a producer, highlight the main processes and activities and discuss use ofmaterials, capacities & utilization, staffing levels, productivity, quality issues, energy consumption,waste, inventory-building, transport/distribution and so on.

Use simple tables as per the following example showing first-year inventory projections. It was copiedand pasted directly from Exl-Plan's built-in Textual Summary Report (more information) as a “picture”.


Briefly describe systems for product costing, quality control, production management, maintenance,customer support etc. Use simple tables to summarize and place any important detail in an appendix.

Explain transport/distribution arrangements and related costs.

9.3. Capital Expenditure Projections

Specify investments to date (if not covered in 4. Present Status) and plans. Distinguish betweenmandatory and discretionary expenditure. If appropriate, include or append maps, charts, pictures etc.

Where relevant, cost justify investments by indicating their expected return-on-investment. In simplestterms, this could be the payback interval e.g. if expenditure of $50,000 could generate incremental costsaving of $100,000 a year, then the payback would be 6 months.




Summarize planned capital expenditure:


20XX($000)

20XX($000)

20XX($000)

Project #1 Project #2 Project #3 Total Capital Expenditure

Where appropriate, summarize the planned funding of this expenditure:


20XX($000)

20XX($000)

20XX($000)

New equity New Loans Internal Cash Flow Total Capital Expenditure

9.4. Operating Cost Projections

Segment costs as variable, semi-variable and fixed. Indicate costings for key products/services andspecify individual gross margins. Discuss break-even points at operating unit and product levels.

If appropriate, specify unit costs for key inputs such as materials, labor, payroll, power,communications, environmental services etc. and forecast how these might move in the future due toinflation, currency rates etc.

9.4.1. Purchases& Materials

This subsection could be important for production and distribution businesses.

Identify key services, materials or goods to be purchased for either production or resale. Outline plansfor sourcing them. For key items, indicate specifications, prices, taxes/duties, purchasing arrangementsand credit terms. Discuss likely future price trends.

For distribution businesses (wholesale and retail), describe the range of goods to be purchased, explainabout shelf life and inventory, and discuss mark up percentages used to help arrive at selling prices.

In the case of production businesses (manufacturing and service businesses with significant expenditureon bought-in items), explain the composition of material (or bought-in components or services) withinfinished products (i.e. the bill of materials) and discuss such matters as procurement, materialutilization, inventories and unit material costs.

9.4.2. Direct Labor

Confine these head count projections to labor and staff directly or indirectly involved inoperations/production. In other words, restrict these projections to personnel involved in creating outputfor sale or whose numbers vary (fully or partly) with output levels. Present the head count projectionsfor staff engaged in sales & marketing, R&D, management & administration in other subsections.



Indicate the organization structure, human resources (head counts, grades, skills, training etc.) relatingto production, warehousing, distributions, maintenance, quality control, customer support etc. Whereappropriate, convert part-time numbers to full-time equivalents. If practicable, specify laborproductivity trends based on the projected sales volumes and head count levels.

Use simple tables to summarize and place detail in appendices. The following table could be used for aproduction venture.

Years to end xxMonth: 20XX 20XX 20XX 20XXHead count - Direct production Head count - Indirect production Head count - Maintenance Head count - Utilities Head count - Quality Head count - Warehousing Head count - Transport Head count - Supervision Head count - Management Total head count Total production (000 units/year) Output/person (Units)

This table might be used to determine total and unit payroll costs:

Years to end xxMonth: Payroll Cost($000/person)

20XX($000)

20XX($000)

20XX($000)

20XX($000)

Direct production Indirect production Maintenance Utilities Quality Warehousing Transport Supervision Management Total payroll cost

Total production (000 units/year) Payroll cost/Unit ($)

The next table might apply to a software business.

Years to end xxMonth: 20XX 20XX 20XX 20XXUser support Routine product maintenance Production & dispatch Supervision



Management Total head count

The following table summarizes shorter term head counts (for all staffing grades). It was copied andpasted directly from Exl-Plan's built-in Textual Summary Report (more information) as a “picture”.


The tables above are presented for illustrative purposes. In practice, they may be more appropriatelylocated in an appendix.

9.4.3. Other Direct/Variable Costs

Use this subsection to introduce any significant other direct or variable costs such as power, water, etc.if they are significant to the production or distribution process.

Where relevant, forecast consumption/ utilization rates for key items and use these to project their totalcosts.

9.4.4. Total & Unit Costs

Use this subsection to pull together all the direct costs relating to operations, distribution andproduction. Use simple tables with short explanations.

The following table might be used for a production or distribution business:

Years to end xxMonth: 20XX 20XX 20XX 20XXSales projections (units) Sales projections ($000) Materials & bought-in components (or cost of goodsfor resale) ($000)



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Direct labor ($000) Other direct costs ($000) Total direct cost ($000) Average direct cost per unit ($) Average selling price ($/unit) Average direct cost as % average selling price

Where the product mix does not lend itself to averaging, it might be necessary to replicate this type oftable (in an appendix) for each major product group and then summarize the overall results in thissubsection.

The following table might suit a "pure service" business to summarize its operating costs:

Years to end xxMonth: 20XX 20XX 20XX 20XXSales projections (billable hours) Sales projections ($000) Direct labor ($000) Other direct costs ($000) Total direct cost ($000) Average direct cost per hour ($) Average selling price ($/hour) Average direct cost as % average selling price

For businesses with several offerings, it would be useful to summarize margins for each offering asshown in the table below copied and pasted directly from Exl-Plan's built-in Textual Summary Report(more information) as a “picture”.


Note: Free-Plan, a comprehensive 150-page Business Plan Guide and Template based on this businessplan guide, can be downloaded for free here.







Additional HelpThe Exl-Plan range of Excel-based financial planners can be used to generate detailed projections forcosts, expenses, inventory and credit as part of the process of developing fully-integrated financialprojections (income statements, cash flows, balance sheets etc.) for up to seven years ahead. All thecharts and tables presented above were copied directly from output reports within Exl-Plan.

The more powerful versions of Exl-Plan can handle up to ten different revenue/cost streams and cangenerate separate projections of gross margin and working capital requirements for each stream.








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Business Plan Guide:10. Management &

Administration

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Note: Free-Plan, a comprehensive 150-page Business Plan Guide and Template based onthis business plan guide, can be downloaded for free here.

Use this section to introduce the management team and structure and to describeadministrative (overhead) arrangement.


Allow 2-3 pages for this section. Keep under one page for a basic/short plan.

The subsections below are for general guidance only. They could result in someundesirable duplication or overlap. Accordingly, you may prefer to:


Use less obtrusive sub-headings like Management Structure:●

Delete all sub-headings and cover all relevant matters in a series of short paragraphs.●

10.1. Management Structure

Use a simple organization chart to illustrate the structure (if available, utilize the MicrosoftOrganization Charting utility with Word – select Insert | Object…. | Create New | MSOrganization Chart).

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Indicate any gaps in the management team and explain measures to recruit. If necessary, present jobspecs in an Appendix.

If the management structure is likely to change significantly within the plan's life, present separateearly- and late-stage organization charts along with a simple table depicting the growth in managementhead count.

10.2. Key Management Profiles

Introduce the management team and their roles. Include short profiles but relegate details to anappendix.

Also, introduce the board of directors (and any sub-committees) and profile non-executive directors(existing/proposed). Place significant details in an appendix. Outline the board's role in the managementof the business.

Summarize management remuneration and key clauses in employment contracts.

10.3. Administration & Systems

Describe administrative arrangements and indicate locations and facilities.

Explain key operational, accounting and related management systems. Specify communications and ITsystems. Describe development plans and costs.

10.4. Head Count Projections

The following table could be used to present head count projections for administration and managementfunction along with brief explanations of major items or changes:

Years to end xxMonth: 20XX 20XX 20XX 20XXHead count - Reception Head count - Clerical Head count - Accounts









Head count - IT Head count - Security Head count - Middle management Head count - Senior management Total head count

The next table could be used to determine management and administration payroll costs:

Years to end xxMonth:

Payroll Cost($000/person)

20XX($000)

20XX($000)

20XX($000)

20XX($000)

Reception Clerical Accounts IT Security Middle management Senior management Total payroll cost

Here is an example of shorter term projections copied and pasted directly from Exl-Plan's built-inTextual Summary Report (more information) as a “picture”.


The foregoing tables are for illustrative purposes. In practice, they may be more appropriately located inan appendix.



10.5. Overhead Expense Projections

Indicate main components of overhead costs and present high-level projections as shown in thefollowing table:


20XX($000)

20XX($000)

20XX($000)

Total payroll cost Overhead cost #1 Overhead cost #2 ................ Total overhead cost

Include brief explanations of major items or changes.

Here is an example of shorter term projections copied and pasted directly from Exl-Plan's built-inTextual Summary Report (more information) as “pictures”.


Charts can be much easier to follow than tables.



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This chart was "pasted in" as picture from Exl-Plan, PlanWare's Excel-based financial planner.

Additional HelpThe Exl-Plan range of Excel-based financial planners can be used to generate detailed projections forcosts, expenses, headcounts etc. as part of the process of developing fully-integrated financialprojections (income statements, cash flows, balance sheets etc.) for up to seven years ahead. The tableand chart above were generated using Exl-Plan and pasted directly from its Textual Summary Report.












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Business Plan Guide:11. Financial Projections

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Present key financial projections e.g. P&Ls (income statements), cash flows,balance sheets and key ratios.


Complete this entire section within 4-6 pages by ensuring that onlyhigh-level financial projections are included in summary tables. Keep withintwo pages for a basic/short plan.

Place all detailed schedules in appendices.

The subsections below offer a structure for presenting projections and shouldby and large be adhered to.

If break even is expected to occur within a year, make the projections on amonthly basis for the first year and use quarterly thereafter. Otherwise, showmonthly projections until the year in which break even (for profitability andcash flow) is anticipated. It is essential that all the financial statements be fullyintegrated and linked.

Most business plans include projections for either three or five yearsdepending on their size and the amounts and timing of any external fundingbeing sought. In exceptional cases, the financial projections may need to runfor as long as twenty years to capture the totality of the business and itsfunding. In such cases, projections beyond five years are likely to be veryspeculative and illustrative rather than firm forecasts. Often, these projectionswould be associated with major investment or infrastructural projects beingpursued in a very stable economic environment.

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Financial projections must not be prepared in isolation from the rest of the plan. For example, the results ofmarket research should flow into your sales projections which, in turn, should drive the revenue forecasts.Under no circumstances should you do the detailed financial projections and then write a plan to suit. By allmeans, do some high-level financial planning* at an early stage to get a feel for the basic figures andsensitivities but don't let the plan become a financially-driven document without any strong market basis. Forfurther tips and traps, refer to the white paper on Preparing Financial Projections. Also, review the whitepapers dealing with Making Cashflow Forecasts and Managing Working Capital. If planning to raise venturecapital, business angel finance or bank loans, check the paper on Raising Finance.

* You can use the Quik-Plan facility within Exl-Plan, our Excel-based business financial planner, to generate first-cut three/five year projectionswithin minutes.

Under no circumstances, do the detailed financial projections and then write a plan to suit. By all means, dosome high-level financial planning at an early stage to get a feel for the basic figures and sensitivities but donot let the plan become a financially driven document without any strong market basis. For further tips andtraps, refer to the white paper on Preparing Financial Projections.

The development of an integrated, error-free, spreadsheet-based financial planner is a very difficult andtime-consuming task even for experienced accountants and spreadsheet users. You do not want to spendseveral days developing a computer model when you are really interested in planning a business.PlanWare's Exl-Plan can help smooth this process.

Exl-Plan runs with Excel for Windows (5, 7, 8, 95, 97, 2000 and XP). Sixteen variants are available tocover different sizes of businesses and accounting formats. Typically, Exl-Plan produces fully-integrated1-3-5-7 year financial projections - monthly for the first year, quarterly for second-third, and annual forfourth-fifth. Based on a user's assumptions, it generates income statements, cash flows, balance sheets,ratios and graphs for each period (month, quarter & year). Many of the tables and charts in this plan havebeen copied and pasted directly from Exl-Plan.

Exl-Plan will automatically generates a Textual Summary Report which could form the basis for thefinancial section of your plan. Its mini-charts and summary tables can be pasted straight into a plan beingprepared using Word etc. Get further information and trial copy downloads.

The presentation of financial projections is covered in five sub-sections as follows:

Key Assumptions1.

Income (P&L) Projections2.

Cash Flow Projections3.

Balance Sheet Projections4.







Ratio Analyses5.

Sensitivity Analyses6.

Overall Assessment7.

Note: Free-Plan, a comprehensive 150-page Business Plan Guide and Template based on this business planguide, can be downloaded for free here.





11.1. Key Assumptions

Use this section to review and pull together the key assumptions to be used in the financial projections. Thefollowing table indicates the diversity of assumption variables that may need to be considered in order toproduce projected P&Ls, cash flows and balance sheets for a business.

Sales volumesSelling pricesSelling & distribution costsTax rates for inputsResearch & developmentInterest ratesTax rates for salesManagement/administrationChanges in loans/debtBad debt provisionsGeneral overheadsOperating leases & HPTarget finished stocks

Intangible assetsMaterial costsAccumulated depreciationPrepayments/accrualsMaterial/WIP inventoriesCapital expenditureShare issuesDirect head count levelsCapital & revenue grantsDividendsWage ratesFixed asset disposalsCorporation tax







Depreciation ratesCurrent year debtors/creditorsOpening balance sheetFixed asset values

Other direct costsFinance leasesPhasing of opening balancesOperational overheads

Relate your assumptions for sales, costs, head count etc. to the detailed plans/schedules outlined in precedingsections. In most cases, it will suffice to refer the reader back to the appropriate subsection. For example:

The key assumptions have been based on the following:

Sales projections derived in 7.4 Sales Forecasts at 7. Marketing Strategies,Sales Plans & Projections.

●

R&D expenditure as described in 8. Technology and R&D.●

Operational plans and expense projections as presented in 9. OperationalPlans.

●

Funding of $xx (equity) and $xx (loans) will be secure in the first quarter of20XX as proposed in 12. Funding below.

●

and so on ......●

Having covered the main assumptions within earlier sections of the plan, you will probably still need to inserta simple table here showing some elements of the projections that have not been mentioned previously. Thesecould include:

Depreciation rates for different types of fixed assets.●

Interest rates for loans and cash balances.●

Inventory stocking rates for finished goods, materials and bought-in items.●

Sales and value added tax rates for inputs and outputs and payment intervals.●

Credit terms for receivables (debtors) and payables (creditors).●

Anticipated external funding (see below).●

When determining funding needs, consider the following approach:

Compile projections without any external funding and take note of the peak cash deficit and its timing.The total funding requirement is likely to correspond to this deficit. It should be injected (in one ormore rounds) ahead of being required so as to eliminate (or minimize) unacceptable deficits andperhaps to create cash cushions.

1.

Analyze the projected financial ratios (debt/equity, interest cover and current asset) to help determinethe optimal mix of debt and equity.

2.

Plan to finance the "most likely" case, or even "worst" case, rather than for the "best" case as revealedby sensitivity analysis. Whilst the "best" case may show the smallest funding need, it may beunattainable due to the inevitability of some aspect of the double (costs), double (time) and half(revenues) rule.

3.

Having progressively built up tables for sales, costs, expenditure and staffing in earlier sections of the plan,



you should now be in a position to develop pro-forma financial projections and to summarize them in thefollowing subsections. Under no circumstances should you simply insert multiple pages of detailedspreadsheet output to cover these items. Instead, summarize the projections as per the suggested subsectionsand relegate all the detailed assumptions and output reports to appendices or simply retain them as workingpapers. The sample "pictures" shown in the subsections below are very clear and simple to follow. However,they have been backed up by about a dozen assumption and output reports that could be made available onrequest.

For help with financial projections, see Exl-Plan.

Place the details relating to assumptions in an Appendix.

11.2. Projected Income (P&L) Projections

Introduce the projected income statements (profit & loss accounts) using a short paragraph or bullet pointshighlighting the key expected outcomes for sales and income. Use simple tables to summarize the key figuresand place all detailed analyses in appendices.

As shown below, simple charts (pasted from a set of Exl-Plan projections) can show trends and patterns veryclearly. When presenting financial data in a table or chart, it can be useful to precede it by a short introductorysentence and following it by a short review of its contents. For example:

The following chart shows actual sales and income for Any Company Inc. for 20XXalongside projections for the following five years:


It shows that:

Sales will increase from $380,000 in 20XX to $1.6 million after five years.This represents an average annual growth rate of 33% as explained in 7.4Sales Forecasts at 7. Marketing Strategies, Sales Plans & Projections

●



The net loss of $115,000 reported for 200XX will be transformed into netincome before taxes of $123,000 by the fifth year when the net margin onsales is projected to reach 6%.

●

The key factor in this improvement will be the widening of gross margins from29% in 20XX to 39% as discussed in 9.4 Operating Cost Projections at 9.Operational Plans.

●

More detailed projections can be placed in an appendix for Finance.

11.3. Cashflow Projections

It is usual to give monthly cash flow projections for the first year, or longer, depending on the importance ofcash flow and the time needed for the business to become cashflow positive. Use text and bullets to highlightand explain any key values or summarize the trends shown in tables or charts.

Many readers of your plan – bankers, venture capitalists and other investors – will pay far more attention toyour cash flow projections than to the income statements. They will seek to establish that the business will notrun out of cash before it reaches profitability – more businesses fail for lack of cash than for want of profit.

For more guidance, check the white papers on Making Cashflow Projections and Managing Working Capital.See also the Checklist for Improving Cashflow. A chart is ideal for illustrating monthly cash flows andbalances. For example:

The following chart shows cash flows for Any Company Inc. for the initial 12months covered by this plan:





This chart highlights the following cash movements:

Cash deficit will rise over the 12 months from $39,000 to $75,000.●

For most months, the underlying cash outflow is projected at about $5,000per month. Inflows in October and November are related to planned equityinjections by existing shareholders as explained in 11.1 Key Assumptionsabove .

●

The outflows in December and January are linked to refurbishment ofpremises (see 9.3 Capital Expenditure Projections in 9. Operational Plans).

●

Less detailed projections (quarterly or annual) may suffice for subsequent years as per the next example:

The following table and chart summarizes cash flows and balances for AnyCompany Inc. for the 5 years commencing 20XX:



These items were "pasted in" as pictures from Exl-Plan, PlanWare's Excel-based financial planner.

These indicate the following:

Any Company Inc. will be cash generative after the first year as indicated in the tabulatedcash inflows from operations.

■

The investing activities reflect the refurbishment of premises (see 9.3 Capital ExpenditureProjections in 9. Operational Plans) in 20XX and modest follow-on expenditures.

■

The financing activities reflect the shareholders' investment of $92,000 in 20XX andplanned movements in loan balances during subsequent years.

■

Overall, Any Company Inc. projects a net cash balance of $207,000 by 20XX havingstarted with a cash deficit of $24,000 five years earlier.

■

More detailed projections can be placed in an appendix for Finance. For help with financial projections, seeExl-Plan.

11.4. Projected Balance Sheets

When presenting projected balance sheets, you will need to include an opening balance sheet that has beenbased on audited figures (for last year) or estimated data (for current year). If your business is a pure start-up,its opening balance sheet may contain no values.

Here is an example of a projected balance sheet table and commentary:

The following table presents summary opening and five-year balance sheets for AnyCompany Inc.:




These summary balance sheets show that:

Owners' equity will increase from £109,000 to $471,000 over the five years.●

Total assets will increase from $267,000 to $964,000 by January 20XX.●

Any Company Inc. will be solvent throughout the five years.●

Note that the projected balance sheets must link back into the projected income statements and cash flowprojections*. The owners' equity should reflect the transfers to reserves in 11.2. Income (P&L) Projectionsabove and the cash movements and balances must tie in with the cash flow projections in 11.3. CashflowProjections above.

* Projections generated using Exl-Plan are fully-integrated. This means that changes to assumptions value are immediately reflected in projectedincome statements, cash flows, balance sheets and related charts and tables.

11.5. Ratio Analyses

Highlight the key ratios and trends over time. To do this, it is essential that projected income statements, cashflow forecasts and balance sheets are linked and integrated with each other so that ratios can be calculated asthe following example shows:

The following ratio analysis is based on the foregoing 5-year projections for Any



Company Inc.:

This table was "pasted in" as picture from Exl-Plan, PlanWare's Excel-based financial planner. It is fully-integrated andlinked to cash flow forecasts and projected income statements and to a much more detailed analysis including many additional

ratios.

The ratios highlight:

Income margins rising from 1.4% of sales to 8.3% in 20XX.●

Income to total assets progressively rising from 2.6% to 13.7%.●

Debt declining from 188% of owners' equity in the first year to just 3% in20XX.

●

An improving trend in "per share" items.●

Do a reality check to confirm that ratios are reasonable. For example, the following ratios could be cause forconcern:

Net income (profit) before taxes above 15-20% for any year.❍

Sales below break even for more than one year.❍

Sales/total asset ratio above 3-5 (times) in any year.❍

Net debt/equity above 80% in any month or year.❍

Current asset ratio below 1 in any month or year.❍

Interest cover under 2 in any year.❍

Return on total assets above 30% per year.❍

Compare projected financial ratios with industry norms and justify any significant deviations. For help withfinancial projections and ratio analyses, see Exl-Plan. For additional guidance, review the white papersdealing with the following:

Preparing Financial Projections

Making Cashflow Forecasts



Managing Working Capital.

11.6. Sensitivity Analyses

Present the key results of a 'what-if' analysis based on "best" and "worst" case scenarios. As a general guide,be conservative even when presenting the "best" case.

When planning scenarios*, take account of possible project start-up delays, sales volume shortfalls, lowerprice levels and higher costs. For example, what would be the financial outcome (or additional fundingrequirement) if sales volumes and prices are both 90% of targets but direct and overhead costs are each 110%of planned?

* All versions of Exl-Plan can be used to explore alternative scenarios. The more powerful versions contain facilities for doing 'high-level' sensitivityanalyses; creating automatically-generated 'what-if' tables; and dynamically assessing future profitability as shown in the DuPont-type ProfitabilityPlanner below.

Indicate break even points and explore the consequences of incrementing volumes, prices and costs (e.g. by10%, 15%, 20% etc.). Only present high-level summaries - relegate the details to an appendix for Finance orretain them in your working papers.



11.7. Overall Assessment

If the financial projections are complex, use this subsection to review them and to assess their implications.6-8 bullet points should suffice. If planning to raise venture capital, business angel finance or bank loans,check the paper on Raising Finance.

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Additional HelpThe development of an integrated, error-free, spreadsheet-based financial planner is a difficult andtime-consuming task even for experienced accountants and spreadsheet users. Bear in mind that you will notwant to spend days developing a computer model when you should be really concentrating on planning yourbusiness.

All the charts and tables presented above were copied directly from output reports within Exl-Plan. Thisfinancial planner runs with Excel 5, 7, 8, 95, 97, 2000, XP, 2003, 2007 or 2010 with Windows95/98/Me/NT/2000/XP/Vista/Win7. Eighteen variants are available to cover different sizes of businesses andaccounting formats. Prices range from US$29 to US$289. Check the benefits of using Exl-Plan over buildingyour own spreadsheet-based planner.

Typically, Exl-Plan produces fully-integrated 1-3-5 year financial projections - monthly for the first year,quarterly for second-third, and annual for fourth-fifth. Based on a user's assumptions, it generates an incomestatement, cash flow, balance sheet, ratios and charts for each period (month, quarter & year). Exl-Plan can beused in conjunction with Free-Plan, a comprehensive 150-page Business Plan Guide and Template based onthis business plan guide.

Have a look at a trial version of Exl-Plan for ideas on the range of assumptions to be considered and thelayout and contents of its projections. The Quik-Plan facility within Exl-Plan can be used to produce 'first-cut'projections. You can get detailed information about Exl-Plan and access trial version downloads.

There is also a free version called Exl-Plan Free which can be used to produce fully-integrated,high-level, financial projections. It is a useful tool in its own right as well as a great introductionto the more powerful versions of Exl-Plan.






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Business Plan Guide:12. Funding

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Having completed 11. Financial Projections, you may have identified asignificant funding need that cannot be bridged from your own resources (andthose of your relatives, friends, colleagues, credit cards, local bank managerand so on) or generated by the business.

If seeking equity, loans or equity/loan combination, use this section to presentyour needs and proposals. Keep it factual and avoid any "over-the-top" hypingof your business as the greatest investment ever!

If planning to raise equity from venture capital or "angel" sources, allowadequate time to raise it. Depending on the amount needed and track record ofthe promoters/business, this will take several months and tie up significantmanagement resources throughout - brace yourself for several re-drafts of thebusiness plan and revisions to the financials.


This entire section need not exceed a page or so.

The subsections below are for general guidance only. You may prefer to:

Use less obtrusive sub-headings like Funding Requirements:●

or even delete all them and cover all relevant matters in a series ofshort paragraphs within this section.

●

For help with financial projections and determining funding requirements, seethe white paper on Raising Finance and Exl-Plan, our financial modeling tool.

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12.1. Funding Requirements

Based on the financial assumptions and projections in 11. Financial Projections, summarize and tabulateyour funding requirements - see Raising Finance and Exl-Plan, our financial modeling tool.

Indicate planned uses, possible sources and forms (equity, loans, grants, credit etc.) and time scales.

12.2. Funding Proposals

Mention any conditional or firm funding commitments already secured.

For each element of funding, describe the preferred form of funding, amounts required, likely timing,security offered and desired terms, repayment schedules and exit options. Bear in mind the golden rule -he who has the gold makes all the rules.

For the benefit of prospective investors, indicate the likely equity funding required; range of the equitystakes on offer; exit routes (IPO, trade sale, buy-back etc.); board representation; and, optionally, make astab at the projected returns on their investment. If presenting comprehensive funding proposals, berealistic when valuing your business and use more than one method of valuation e.g. net asset value,price/earnings ratio, capitalization/revenue ratio, industry yardsticks and so on. Take account of marketsentiment/conditions, "going rates", maturity of the business and degree of risk associated with its plans.Of course, you may wish to withhold all specific funding proposals until you have met possible investorsor lenders face-to-face and heard their initial reactions. In this case, this subsection would be confined toa description of funding needs and possible sources and forms.

Additional HelpIf planning to raise venture capital, business angel finance or bank loans, check the paper on RaisingFinance. The Excel-based financial planner, Exl-Plan, contains extensive facilities for doing sensitivityanalyses. The best way to establish the funding needs of a business under different scenarios is to runExl-Plan without any assumptions about future funding and, for each scenario, take note of the timingand value of the projected peak cash deficits.














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Business Plan Guide:13. Implementation

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This is a critically important section – use it to translate all your proposals intoclear, realistic and implementable plans.

Highlight the major decision points, time scales, milestones and actionsrequired by management and others to progress the plan. Explain contingencyplans to cover shortfalls.

Be realistic about the likely rate of progress and make provision for slippages.


Use a maximum of 3 pages for this section. Limit to one page for abasic/short plan.



Use less obtrusive sub-headings like First & Subsequent Years:●


●

13.1. First Year

Summarize the key tasks to be completed during the first year, use a simpleGantt chart or table. Avoid going into too much detail or being too tactical.

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Month 1 2 3 4 5 6 7 8 9Task 1 Task 2 Task 3 Task 4 Task 5 Task 6 ...... ...... ......

13.2. Subsequent Years

To discuss implementation for subsequent years, use a simple table or bullet points and concentrate onhigh-level, strategic issues.

13.3. Contingency Plans

Discuss contingency measures to cover the possibility of plans going astray for internal reasons or dueto external factors. These could include the following:

Delays in raising external finance or only raising a proportion of the required amount.●

Undershooting of sales projections due to competition, changes in demand or problems withmarketing or distribution.

●

Delays in completing major R&D or capital expenditure programs.●

Non-availability of materials or unexpected cost increases.●

It may be useful to refer back to the results of 11.6 Sensitivity Analyses in 11. Financial Projections.

Additional HelpFree-Plan, a comprehensive 150-page Business Plan Guide and Template based on this business planguide, can be downloaded for free here.






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Business Plan Guide:14. Conclusion

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Use this section to wrap up your plan and leave the reader with a warm andpositive view of the business and its plans.


Confine this section to a few carefully drafted paragraphs and write it whenyour plan is almost complete.

Having reached the end of your plan, review the 3. Strategic Overview toensure that its contents are fully reflected throughout the plan. If not, theneither change the details and/or the strategies to eliminate divergences or pluggaps.

Review what the business expects to achieve. Indicate why it will succeed andwhy investors should support it. Be very positive and confident to encouragefavorable reactions. Maybe, you could draw on some of the strengths andopportunities described as SWOTs in 3. Strategic Overview.

Key questions to ask at this "wrap up" stage include:

Has the Table of Contents been updated and are pagesnumbered?

1.

Has the plan been spell checked in its final form?2.

Is the plan's length appropriate to its purpose?3.

Have the business's funding needs, if appropriate, beenclearly stated?

4.

Does the plan's summary stimulate interest?5.

Have all key questions been anticipated?6.

What likely objections remain unresolved?7.

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Will the plan provoke the desired responses?8.

Tip: Get someone to read a near-final draft plan to check that it makes goodbusiness sense, reads well and is clear. Ideally, that "someone" should be adetached, independent person involved in business with experience of yourindustry and/or business planning. Hopefully, they will be able to see "woodfrom the trees" better than you can. Do not be resentful of any criticism - use itto improve the next draft. If your plan is lengthy or important, anticipateseveral drafts.

Have a look at the Checklist on How NOT to Write a Business Plan to ensurethat you have not made any serious errors in preparing your plan.

To help finalize your plan, review the Checklist for Preparing a Business Plan.You may also wish to look back at the white papers on Writing a BusinessPlan and Insights into Business Planning.




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Business Plan Guide:Appendices to Business

Plan

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This part of the Business Plan Guide outlines the contents of a series ofappendices covering the following themes:

Introductory1.

Marketing2.

Operational3.

Finance.4.

Appendices should be used to contain detailed information which issummarized or referenced in the body of the plan. This reduces the length ofthe plan. It also enhances readability and ensures that the reader does not getsucked into excessive detail.

If the appendices are very lengthy, consider binding them into a separatevolume. This should make the plan appear less intimidating and creates theopportunity to circulate the plan with or without appendices. If presenting theappendices as a separate volume, be sure to include a cover page(complementing that of the main plan) and a detailed contents list (number allpages in the appendices).



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Business Plan Guide:Appendices -Introductory

PreviousNext

Introductory appendices could cover the following matters. They are linked tosections dealing with 4. Present Status and 5. Product/Service Offerings.

Review of Development of Business (20xx to 20xx)Consider using a chronological list. Focus on highlights andimportant events.

Summarized Historic Financial Statements (20xx to 20xx)Tabulate high-level values (revenues, cost of sales, pre-taxprofits, fixed assets, current assets, current liabilities etc.).Summarize highlights and explain any exceptional events. Offeraudited accounts as attachments or separate items.

Detailed Description (Technical Specifications) ofProduct/Service (Range)Assume reader has no prior technical knowledge. Avoid blindingwith science and minimize use of technical terms/jargon. Offertechnical write-ups as a separate document. If necessary, includea short glossary.


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Business Plan Guide:Appendices - Marketing

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Marketing-related appendices could cover the following matters. They arelinked to sections 6. Profiles of Target Markets and 7. Marketing Strategies,Sales Plans & Projections.

Market Review and Results of Market ResearchIf you cannot compile this appendix, you should seriouslyconsider whether you are ready to write a business plan. Includetables explaining size of market, segmentation, growth patterns,distribution channels, price/quality segments, customercategories, future trends, market share/segmentation projectionsetc. You should summarize the main findings in 6. Profiles ofTarget Markets.

Assessments of CompetitorsDescribe who, what, where, how etc. Explain how your productsand services compare. How would you rate your business'sstrengths, weaknesses, threats and opportunities relative to yourmain competitors.

Market Projections & Sales Forecasts (20xx to 20xx)Use tables and charts. Clearly state all key assumptions on marketsize and shares, volumes and prices. If you plan to serve severalmarkets, you should devote separate sub-sections to each and thenproduce a summary of the overall projections for inclusion in 7.Marketing Strategies, Sales Plans & Projections. Explain your

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marketing strategies and sales plans in detail - specify resources,costs etc. Identify any prospective partners and describe salesmethods.

Additional HelpIf you need help here, review the white papers on Devising Business Strategies and Developing aStrategic Business Plan and try the free Online Strategic Planner.

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Business Plan Guide:Appendices - Operational

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Appendices dealing with operations could cover the following matters. Theyare linked to sections 8. Technology and R&D, 9. Operational / ManufacturingPlans and 10. Management & Administration.

Technology and R&DUse this appendix to expand on the material in 8. Technology andR&D. In particular, include any important technical material here.

Details of Manufacturing/Operational Plans & CostsDescribe processes/operations in limited detail. Diagrams or flowcharts may help explain complex issues. Indicate capitalinvestment (and timing), describe/justify (briefly) the functions ofmajor items and review any capacity-related issues. Discusssources of materials/supplies and their costs. Specify projectedmanning levels/rates, direct/indirect operating costs andproductivity levels. Discuss inventories and production cycles aswell as related planning and control systems. Even if you are aservice business, use this appendix to describe operational issuesconnected with the provision of services, support etc.

CVs of Senior ManagersIf your business is substantial, you should aim to present CVs fora balanced and experienced management team. If gaps exist,supply job descriptions/ specifications and explain how they willbe filled. Remember the five factors which venture capitalistslook for when making an investment - management, management,management, market and, finally, product. Bear in mind thatmany businesses try to follow this sequence, but in reverse

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Business Plan Guide:Appendices - Finance

Previous

Appendices dealing with finance could cover the following matters. They arelinked to sections 11. Financial Projections and 12. Funding Requirements &Proposals.

Assumptions for Financial Projections (20xx to20xx)The assumptions should be consistent with andderived from forecasts and data presented in earliersections/ appendices of the plan. Use text bullets tohighlight key assumptions and place the details intables within this appendix.

Financial Projections (20xx to 20xx)Present fully-integrated income statements (P&Ls),cash flow projections and balance sheets by monthfor the first year or longer. Present less detailedquarterly & annual projections for subsequent years.Note: The opening balance sheet and first year'sprojections should coincide with the first yearcovered by your plan.

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Additional HelpTo save time and gain instant access to expertise, consider using Exl-Plan to generate your financialprojections. This financial planner runs with Excel 5, 7, 8, 95, 97, 2000, XP, 2003, 2007 or 2010 withWindows 95/98/Me/NT/2000/XP/Vista/Win7. Eighteen variants are available to cover different sizes ofbusinesses and accounting formats. Prices range from US$29 to US$289. Check the benefits of usingExl-Plan over building your own spreadsheet-based planner.

You can download a trial version of Exl-Plan and look at its monthly assumption reports. Also, reviewthe contents and layouts of its monthly, quarterly and annual output reports.

There is also a free version called Exl-Plan Free which can be used to producefully-integrated, high-level, financial projections. It is a useful tool in its own right as well asa great introduction to the more powerful versions of Exl-Plan.

If using Exl-Plan to make projections, you can paste key summary tables and charts from its TextualSummary Report directly into a Word-based business plan. For more information, see Free-Plan, acomprehensive 150-page Business Plan Guide and Template based on this business plan guide.





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Checklist: How to Write aBusiness Plan

Printer-friendly copy:PDF document or web page

See also:How NOT to Write a

Business Plan

Links within the checklist relate to the Business Plan Guide

How to Write a Business PlanPreliminary Tasks Done

1. Complete market research and analyses

2.Clarify key matters relating to products/services andtechnology

3. Form the basis of the management team

4. Prepare a strategic plan as framework for detailed plan

5.Decide the central purpose of the plan and its targetaudience

6.Locate professional advisers to assist with theplanning

7.Acquire any software tools needed to help prepare theplan

8.Research and compile a list of possible recipients ofthe plan

9. Ascertain any specific needs of likely key recipients

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Writing the Plan Done

1. Create a framework for the plan e.g. table of contents

2. Identify possible appendices, attachments etc.

3. Estimate page lengths for each key section

4.List main issues and topics to be covered within keysections

5.Assign work programs based on the framework andlists

6.Draft preliminary sections (excluding summary)within the front of the plan

7.Draft all key sections in the plan's body in a logicalsequence

8.Compile financial projections, funding proposals andrelated appendices

9.Check the preliminary draft for completeness andplug gaps

10. Stand back and take a detached overview of the draft11. Let an outsider or adviser critique the latest draft12. Redraft, fine tune and spell check

13. Write the executive summary and plan's conclusion

14. Get an independent assessment of the final draft

Reviewing the Plan OK

1.Is the plan nicely presented - bound, pagenumbered etc.?

2. Has the plan been spell checked in its final form?3. Is the plan's length appropriate to its purpose ?

4.Have the business's (funding) needs been clearlystated ?

5. Does the plan's summary stimulate interest ?6. Have all key questions been anticipated ?7. What likely objections remain unresolved ?8. Will the plan provoke the desired responses?

Further help:

See white papers on Writing a Business Plan and Insights■









into Business Planning.

Explore the Business Plan Guide.■

Download Free-Plan, a free Business Plan Template forWord (48 pages) and a complementary Guide (supplied asa 90+ topic Help file and as a 100+ page PDF file forprinting).

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Business Planning Papers:Getting New Business Ideas

Page ContentsStarting to Get New Business Ideas1.

Before Searching for Business Ideas2.

Looking for New Business Ideas3.

Assessing the Business Ideas4.

From Business Idea to Business Plan5.





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1. Starting to Get New Business IdeasThe location and development of viable business ideas is as much an art, ormatter of luck, as the use of systematic techniques. Certainly, you can usestructured approaches, as described below, but the reality is that having theright background, being in the right place at the right time, and working hardto create lucky breaks are likely to be just as important in coming up withsound business ideas.

The concepts presented below represent a series of checklists. They need notbe followed systematically and, most certainly, they should not be perceivedas a sure-fire recipe. Instead, view them as a series of menus from which youcan pick and choose according as your thoughts develop. Probably, the onlyissue which everyone searching for new business ideas should reviewsystematically is their own strengths and weaknesses and to use this as theirkey building block and jumping off point.



Top of Page

2. Before Searching for BusinessIdeasThe starting point for developing new business ideas lies inside theprospective entrepreneur rather than in the marketplace, laboratory, businessplan etc. You are the critical component - it is your strengths and weaknesseswhich should dictate the areas in which to seek ideas and the likely scale &scope of your business. At the end of the day, support for your business byfinanciers, suppliers, customers etc. will also be a vote of confidence in your










abilities to make it successful.

You should build on your strengths and surmount or work around yourweaknesses, and possibly cut your cloth to meet your main limitations. Forexample, there is little point in searching for capital-intensive orknowledge-based ideas if you have slim/no prospects of raising the necessarycapital or if your educational background is unsuitable. OK, OK, we have allheard stories of garage-starts by school drops-out which attracted venturecapital and eventually became mega-businesses, but we don't hear so muchabout the huge numbers of failures.

What angle are you coming from? Are you:

An inventor who has a product/service idea?❍

An innovator who has developed a newproduct/service?

❍

Out of work and want to create a job foryourself?

❍

An entrepreneur who wishes to create abusiness?

❍

A manager who wishes to develop a business?❍

Be especially aware that inventors and innovators does not necessarily makegood business people.

Areas where you should make honest assessments of your strengths andweaknesses include the following:

Educational backgroundAny (special) business or technical qualifications?●

Do you have a knowledge of finance & marketing?●

Are you up-to-date with business-related issues?●

Financial strengthsHave you access to personal or family funds or finance from othersources?

●

How much, how easily, what conditions and when?●

How long could you survive without any (regular) income while yourbusiness develops?

●

CommitmentWhy do you really want to start a business?●

Are you in reasonable health?●

Have you any/many family commitments?●



Does the family fully approve of your proposal to set up your ownbusiness?

●

Are you willing to relocate/commute in order to pursue a businesspossibility?

●

Expertise & interestsDo you have insights into any business sectors or trades?●

What are you good at or like doing?●

Do you have a hobby/interest/talent which could become the basis of abusiness?

●

Personal qualitiesAre you a resourceful, energetic and motivated person?●

Have you a capacity to take lots of knocks and bounce back?●

Are you realistic and practical? Are you a hard worker?●

What do you dislike doing?●

Prior experienceWhere have you worked before?●

Have you done anything special, exceptional or unusual?●

What work-related skills or expertise do you have?●

External contacts, resources etc.What contacts have you in finance, business etc.●

Have you or your family access to any under-utilized resources.●

Do you know people who might help give you a start?●

Don't be afraid to ask other people to help assess your strengths and weaknesses.



Businesses


Plan

To help surmount weaknesses, consider the idea of forming an entrepreneurial team (or taking on apartner, part-time adviser, non-executive director etc.) but beware of trying to work with people youdon't like or respect, and don't involve family unless you are really, really sure that it will work out forthe long-term.

Write down your assessments and rank your main strengths and weaknesses. Make sure to avoid thetrap of showing something as both a strength and weakness. Use the resulting list to help set the criteriaand boundaries to your search for business ideas. For example, the scope of your ideas might embrace



ideas centered around one of the following:

Specific local services; about $XX,000 cash; use of an existing resource etc.1.

Previous work experience; national markets; formation of team etc.2.

Be specific but don't place unnecessary limits on the scope of your ideas or thinking. Some clear ideasmay have already started to emerge which could start evaluating straight away.

Top of Page

3. Looking for New Business IdeasWhen looking around for business ideas, bear in mind that these could be based on any of the followingapproaches:

A manufactured product where you buy materials or parts and make up the product(s) yourself.●

A distributed product where you buy product from a wholesaler/MLM, retailer, ormanufacturer.

●

A service which you provide.●

Bear in mind that most good business ideas are not completely original. You may be familiar with thefollowing diagram which shows the possible combinations of existing/new products/markets.

Existing Products New Products

Existing Markets 1 2

New Markets 3 4

The simplest business ideas (existing products in existing markets) will be located Box 1 and thetrickiest (new products in new markets) are likely to be in Box 4. If you concentrate on pursuing ideasinvolving existing products in existing markets, you run the risk of being exposed to severecompetition. If you focus on new products in new markets, you might find yourself too far out on alimb. Look most closely at the combinations of products and markets in boxes 2 & 3.

You must narrow your search to specific market or product areas as quickly as possible. For example,the "food business" is too broad a search area. Do you mean manufacturing, distribution or retailing, ordo you mean fresh, frozen, pre-prepared etc. or do you mean beverages, sauces, confectionery etc.? It isbetter to pursue several specific ideas (hypotheses) rather than one diffuse concept which lacks specificsand proves impossible to research and evaluate.

Generally, you should always aim for quality rather than cheapness. Be very cautious about pursuingideas which involve any prospect of price wars or are very price sensitive; of getting sucked intoshort-lived fads; or of having to compete head-to-head with large, entrenched businesses.

Observe consumer behavior:



What do people/organizations buy ?●

What do they want and cannot buy ?●

What do they buy and don't like ?●

Where do they buy, when and how ?●

Why do they buy ?●

What are they buying more of ?●

What else might they need but cannot get ?●

Look at changing existing products or services with a view to:

Making them larger/smaller, lighter/heavier, faster/slower■

Changing their color, material or shape■

Altering their quality or quantity■

Increasing mobility, access, portability, disposability■

Simplifying repair, maintenance, replacement, cleaning■

Introducing automation, simplification, convenience■

Adding new features, accessories, extensions■

Changing the delivery method, packaging, unit size/shape■

Improving usability, performance or safety■

Broadening or narrowing the range■

Improving the quality or service.■

Be on the look out for:

Emerging TrendsFor example, the population within your area may be getting older and creating demand for newproducts and services.

●

Expanding Market NichesFor example, local industries may be outsourcing more of their services.

●

Try the following approaches to locating ideas and suggestions:

Brainstorm with your friends, associates❍

Ask people for their ideas❍

Use one idea to spark a better one❍

Read relevant trade magazines (local, national and foreign)❍

Skim through trade directories (local, national and foreign)❍

Above all, open your eyes wide and try to spot the obvious gaps. By all means be inventive, imaginativeand original in your thinking but stay market- and consumer-orientated rather than product-obsessed.We all know stories about people inventing a better mousetrap and never getting a nibble from themarket!!



Top of Page

4. Assessing the Business IdeasHaving built up a moderate list of ideas, these must be evaluated so that a short-list of preferred optionswith the greatest potential and lowest risk can be assessed in greater depth.

One way of evaluating ideas would be to use a simple scoring system using gut-feel with a limitednumber of criteria as shown below.

Factor Score (1-10)

Personal fit ??

Degree of risk ??

Funding needed ??

Ease of start-up ??

Short-term potential ??

Level; of preparation ??

Competitive threats ??

Etc. etc. ??

Total xx

Before scoring individual ideas, run through the criteria and set what you feel should be minimumdesirable scores for each. The resultant total could be used as your overall minimum threshold. If someideas don't achieve satisfactory scores, drop them and look for better ones.

Once your short-list has been developed, you will need to start devoting substantial time to assessment,research, development and planning. For a start, you could pursue the following tasks:

Discuss products/services with prospective customersWould they buy from you, at what price, with what frequency etc.?Why would they prefer your products to the competition?

Find out what they really think - there is a danger that people will tell you what they think youwould like to hear. Listen carefully to what is being said; watch carefully for qualifications,hesitations etc.; and don't brow beat respondents with your ideas - you are looking for theirviews.

1.

Assess the market using desk & field researchHow does the market segment (by price, location, quality, channel etc.)?What segments will you be targeting?

2.



How large are these segments (in volume terms) and how are they changing?What are the price makeups/structures?What market share might be available to you bearing in mind your likely prices, location, breathof distribution, levels of promotion etc.?

Analyze your competitionWho are they and how do they operate?Are they successful and why?How would they react to your arrival?What makes you think that you could beat the competition?At whose expense will you gain sales?

3.

Consider possible start-up strategiesWill you be able to work from home or part-time?Will you seek a franchise or set up as an in-store concession?Will you start by buying in finished products for resale as a precursor to manufacturing?Will you contract out manufacturing?Will you buy an existing business or form an alliance?Could you lease or hire equipment, premises etc. rather than buy?How will you stimulate sales?Look carefully at the White Papers on Devising Business Strategies and Developing a StrategicBusiness Plan.

4.

Set ball-park targets and prepare first-cut financial projectionsEstimate possible sales and costs to get a feel for orders of magnitude and key components and toestablish a rough break-even point (when our sales might start covering all your costs). OurExl-Plan (for Excel) can be used to prepare 3/5-year financial projections (P&Ls, cashflows,balance sheets, ratio analyses and graphs). It incorporates a Quik-Plan facility for doing quickand dirty projections.

Avoid over-estimating likely sales and under-estimating costs or lead times. Better to berelatively conservative. Don't confuse profits and cash - see the paper entitled Making CashflowForecasts for further information - and make sure that you make adequate provision for workingcapital.

5.

Prepare a simple action planCover the first year of operations to highlight the critical tasks and likely funding needed beforethe business starts generating a positive cashflow. This is critical especially if you have toundertake significant product or market development or need to give credit to customers.

6.

Critically examine ideas from all anglesCan I raise enough money?

7.



Can I get a premises/staff etc.Will the product work?How will I promote and sell?

Think through possible problems. What would happen if sales took twice the expected time todevelop while costs escalated? What would happen if .......

Bear in mind that the incubation period for a new business can easily last several months or even years.Don't rush into the first feasible idea without letting it incubate or develop in your mind for a reasonableperiod. There might be a tendency to get all fired up and enthusiastic such that your heart is starting torule your head. Instead, stand back and think!!

Do not be afraid to seek external assistance from professional advisers or from enterprise supportorganizations which are virtually everywhere. These include SBDCs in the US, Enterprise Agencies &Business Links in the UK, County Enterprise Boards in Ireland, EC BICs throughout the EU and soon......


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5. From Business Idea to Business PlanHaving firmed up on a specific idea and conducted preliminary research, you have several optionsincluding the following:

Undertake more detailed/specific market research.●

Do further product research, development, testing etc.●

Review and refine your proposed start-up and developmental strategies. Refer to the papersentitled Devising Business Strategies and Developing a Strategic Business Plan for furtherinsights into strategy development.

●

Draft a detailed or outline business plan. Consult the papers about How to Write a Business Planand Insights into Business Planning as well as the Checklist for Preparing a Business Plan andFree-Plan, free 150-page Business Plan Guide and Template in Word format.

●





Prepare financial projections. See the paper about Preparing Financial Projections and look at ourExl-Plan (for Excel) business financial planner.

●

Start looking around for the key resources - people, money. premises, partners etc.●

Most probably, you will start addressing all these tasks in parallel rather than sequentially. Other issueswhich you may need to start thinking about include the following:

Select a company or business name, logo etc.❍

Decide how you will start trading - limited company, sole trader etc.❍

Enquire into any licenses which might be needed, or regulations to be compliedwith.

❍

Think about where the business will be located.❍

Look for professional advisers (lawyer, accountant) and a bank.❍

Consider likely telephone/communications needs.❍

Bear in mind that, to develop a successful business, you must:

Define precisely the nature of the business■

Offer clearly identifiable products or services■

Tap a real need or generate a demand for your product/service■

Operate within your expertise and resources■

Have realistic targets and have reasonable expectations■

Keep everything as simple and straightforward as possible.■

If, at all feasible, there are huge advantages to be gained by embarking on a "soft start" or pilot launchbefore plunging full tilt into the new business. This approach can be of enormous value in helping tofirm up on the scope of the opportunity; gaining more insights into the market; debugging products andgetting customer feedback; curtailing costs and personal or financial exposure; acquiring a track recordetc. etc. - check Devising Business Strategies for further insights into "soft start" strategies.







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Free Online Strategic Planner

Page ContentsIntroduction to Planner1.

Strategic Business Planning Form2.

Follow Through3.

Need Financial Projections for Your Plan ?

Use Exl-Plan for preparing comprehensive financial projections for 1/3/5/7years ahead. Ideal for a business plan, strategic planning, cash flowforecasting, raising finance, budgeting and financial appraisals. Get fulldetails, download free or trial copies or buy & use now.

1. Introduction to PlannerThis Online Strategic Planner is suitable for substantial start-ups, established businesses and strategicbusiness units within major corporations. When completed, your plan will print out on three pages. Itwill be usable in its own right as a stand-alone document or as the precursor to a business plan (seeHow to Write a Business Plan).

View this Sample Strategic Plan (you may wish to print this plan for reference purposes) and check out

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Strategic Plan On-Line: Business Strategy, Strategic Planners, Strategic Plans, Mission S..., Sample Business Plan, Business Plans, Business Planners, Strategy Development Software,

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feedback from past users. Here is an overview of past users based on anonymous feedback suppliedusing the form immediately underneath the online planner.

Numbers Employed(% Total)

Location of Users(% Total)

Minutes Spent on Planner(% Total)

None 22 North America 55 Under 15 9Up to 50 51 Europe 10 15-30 1550-250 14 Other 35 30-45 18250-1000 7 Total 100 45-60 17Over 1000 8

Over 60 40

Total 100 Total 100

Note: The content of your plan is strictly confidential and is not disclosed to us. In theory, yourplan could be observed by a third party during the compilation process, as might be the case forvirtually every text-based transmission. In practice, this is extremely unlikely to happen.

Prior to using the online planner, we recommend that you review the contents of the following whitepapers:

Developing a Strategic Business Plan (essential)●

Devising Business Strategies (useful)●

Once your strategic thoughts have been assembled, the online planner can be used as follows:

Enter text as guided for some/all the sections in the form below. These cover:

1. SWOTs2. Vision3. Mission Statement4. Corporate Values5. Business Objectives

6. Key Strategies7. Future SWOTs8. Review of Plan9. Major Goals10. Strategic Action Programs

1.

At any stage, press the Compile Plan buttons below to update your compiled plan which will bedisplayed on a separate page.

2.

To resume drafting, use your browser's back arrow to get back to your place in the form.3.

When your plan has been completed, you can use the compiled plan as is, or copy/paste itscontents into a word processor for final editing and/or reformatting. See Follow Through.

4.




Need More Help with your Strategic Planning ? Have a look at:Plan Write Expert Business Planner: Combined business plan tool andexpert system to help evaluate and develop your plan.

●


●


●

That's it !!!! Get a cup of coffee, take the phone off the hook, get thinking and start planning. Allowyourself reasonable time (about 60 minutes) to complete the plan in one sitting.

The planner is also very suitable for use by a management team - just print and distribute copies of theplan's structure, and appoint an "editor" to input ideas into the form below. Allow plenty of time fordiscussion and debate.

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2. Strategic Business Planning FormWhenever you press a Compile Plan button, you will be sent to a separate newly-compiled pagecontaining your plan. To continue drafting, use your browser's back arrow to get back to your place inthe form.

VERY IMPORTANT: Your inputs to the form below and the resultant plan willreside in your PC's memory and online. Consequently, if you close (or refresh) this pagebefore completing the form and saving the compiled plan, you'll lose all your work!

Tip # 1: When you see your plan after pressing the Compile Plan button, we recommend youperiodically copy and paste its entire contents into a text editor such as Notepad. You cankeep overwriting previous pastes so you only retain the latest version. This may seem a pain inthe *** but it will ensure that your plan is safe even if a problem arises.

Tip # 2: You can go off-line and continue working on your plan (provided you do not closethis page). When your plan has been finalized, press the Compile Plan button to get backonline and to see/print your compiled plan. If you work on your plan off-line, you must finishthe entire plan off-line. Once you go back online, you'll be able to see/print your plan but youwill not be able to edit it online.



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Name of Business Get Started:

Enter a real or fictitious name for yourbusiness and press the Compile Planbutton below to check that the systemworks OK - you will be sent to a newpage containing the bare bones structureof your plan.

To continue drafting, use your browser's back arrow to get back to this form. You can press theCompile Plan button at any stage during drafting for an updated view of your plan.

1. SWOTsGuide:Briefly list major existing strengths (S), weaknesses (W), opportunities(O) & threats (T). S & Ws areinternal to the business and O & Ts are external. All SWOTs should be 'one-handed', for example,something is either a S or a W but cannot be both! Enter up to six items under each heading. Ifplanning a new business, consider the project's and its promoters' existing SWOTs.

More help on the SWOTs (use your browser's back arrow to get back to this form). Also, see thisSample Strategic Plan (use your browser's back arrow to get back to this form) for ideas on how tocomplete this form - you may wish to print this sample as a guide.

Key Strengths Key Weaknesses

Key Threats Key Opportunities




2. VisionGuide:What will the business look like in3-4 year's time? If a visitor fromMars dropped in what would be seenand sensed. Write in future tense.Maximum of 150 words.

More help on the Vision (use yourbrowser's back arrow to get back tothis form).

If you press the Compile Plan button, you will be sent to a new page containing your compiled plan.To continue drafting, use your browser's back arrow. You can press the Compile Plan button at anystage during drafting for an updated view of your plan.

3. Mission StatementGuide:What is/will the business really,really be doing? What activitiesis/will it perform, where, how etc.?What is/will the business offer andhow is/will it be special/competitive?Every noun, adjective and verb in thestatement is important and must bejustified. Write in present tense.Maximum of 150 words.

More help on the Mission (use yourbrowser's back arrow to get back tothis form).



4. Corporate ValuesGuide:Describe the values and standardsgoverning the operation of thebusiness and its relationships withsociety, customers, suppliers,employees, local community andother stakeholders. Maximum of 150words. This item may be especiallyimportant for NFP (not-for-profit)and educational organizations.


This might be a good time to copy your plan into Word orNotepad as backup.

5. Business ObjectivesGuide:Highlight the achievements andbroad progress to be realized over thenext 3-4 years. These can relate toshareholders, management (if notshareholders) and business itself. Donot enter specific goals or targets -these come later in the plan.Maximum of 150 words.

More help on the Objectives (useyour browser's back arrow to getback to this form).

6. Key Strategies



Guide:Devise strategies by building on strengths, resolving threats, exploiting opportunities and avoidingthreats. Consider any new dimensions revealed by your Vision and Mission. List major strategiescovering the business as a whole (including such matters as diversification, organic growth, oracquisition plans) or primary matters within key functional areas (finance, management, marketing,sales, operations, R and D etc.). Separate must do and should do strategies.

More help on the Strategies (use your browser's back arrow to get back to this form).Must Do Strategies Should Do Strategies

7. Future SWOTsGuide:Review your plan so far and add any new or emerging SWOTs which may not have been adequatelyaddressed within the proposed vision, mission, objectives and strategies. This task is optional. Note:If you insert future SWOTs, they will be added to the initial SWOTs (see #1 above) in yourcompiled plan.

More help on the SWOTs (use your browser's back arrow to get back to this form).


Future Strengths Future Weaknesses



Future Threats Future Opportunities

8. Review of PlanGuide:Refine and revise/restate key strategies to deal with the perceived FUTURE SWOTs and to makesure that all elements of the plan are realistic, specific, practical, internally consistent and mutuallysupportive.


This might be a good time to copy your plan into Word orNotepad as backup.

9. Major GoalsGuide:Based on theforegoing,quantify keyhigh-level targetswhich are (very)achievable overnext 3-4 years interms of sales,marketsegments/shares,products/services,finances,operations,technologies,



employment,profits etc.

More help on theGoals (use yourbrowser's backarrow to get backto this form).

10. Strategic Action ProgramsGuide:Based on the proposed strategies andset goals, outline up to six majoraction programs in order ofimportance. For each, indicate what,who, where, how and when, i.e.specify the resources, objectives,time-scales, deadlines, budgets andperformance targets for each actionprogram. Let them stand alone or usethem (later) as the basis for a detailedbusiness plan (use your browser'sback arrow to get back to this form).

If you press the Compile Plan button, you will be sent to a new page containing your compiled plan.To continue drafting/refining, use your browser's back arrow. You can press the Compile Planbutton at any stage during drafting for an updated view of your plan.

Review the completed plan to check its realism and that the proposed actions make sense and can befulfilled.

This would be a good time to copy your plan into Word orNotepad as a permanent record and as a backup.



See a Demo orGet a



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That completes the Plan !

If you press the Compile Plan button above, you will be sent to your final compiled plan. To preserve itscontents, you should copy/paste the entire plan into Microsoft Word (or similar) on your PC.Alternatively, you can save the file containing the compiled plan on your PC. Note that it will be saved asa *.htm file if using Internet Explorer and as *.php if using Netscape.

By copying and pasting your compiled plan into Word, you can do final editing and/or reformatting. Thiscould include the following:

Deleting or merging headings.●

Merging items to eliminate duplication and to generally tighten up the text - shorter is best.●

Removing the SWOT analyses where it might not be appropriate to show these, for example, toinvestors.Tip: If the strategic plan should include SWOTs, consider redrafting them as a very positiveconcluding statement to the strategic plan, e.g. XXX Inc is now very well placed to exploit xxx &yyy opportunities as a result of building up its xxx & yyyy resources and surmounting difficulties inthe xxx & yyy areas ............. and so on.

●

Bear in mind that a good strategic plan is not simply written (once). It should be revised and redrafted(several times, if necessary) until it becomes a tightly focused, practical and attainable plan of action. Ifyou produced the plan by yourself, it could be very beneficial to show it to some independent,experiencedperson for feedback before finalization.

Send FeedbackIf you have used the On-Line Strategic Planner, we'd welcome anonymous feedbackabout it and how you'll use the resultant plan. No identification or e-mail address isrequired. However, if you wish us to reply to your feedback, you must include ane-mail address, or better still, use this Contact Form.

How long did you spend drafting your plan (minutes) ?

How many people are employed in the organization for whichyou made the plan ?

Where is this organization located ?
















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3. Follow ThroughOnce your Strategic Plan has been drafted, you need to give some thought to its detail, execution andimplications. There are lots of other useful tools at PlanWare to explore. Software for writing detailedbusiness plans including:

Business Planner - Comprehensive business plan writer (incorporating outliner, text, charts,financials and extensive help.

●

Expert Business Planner - Similar to Business Planner with the addition of an expert system toanalyses your plan and provides expert advice.

●

Free-Plan - Free Business Plan Template for Word (48 pages) and a complementary Guide(supplied as a 90+ topic Help file and as a 100+ page PDF file for printing.Note that the output from the Strategic Planner is ideal for inclusion in edited form in Section 3.Strategic Overview of this Template.

●

If you need to produce financial projections as part of your plan,take a look at our financial planner - Exl-Plan (for Excel) which can be used to prepare fully-integrated3/5/7-year financial projections (P&Ls, cashflows, balance sheets, ratio analyses and graphs). Itincorporates a Quik-Plan facility for doing quick and dirty projections as well as tools for doing"what-ifs" and several types of sensitivity analyses. Click the thumb opposite to view a Du-Pont typeProfitability Planner which can be used to drill down through ratios and explore high-level "what-ifs"(included in Exl-Plan Super, Super Plus, Ultra & Ultra Plus versions). For a more basic planner, look atExl-Plan Basic (US$ 29) which generates comprehensive "high-level" 5-year projections based on annualassumptions (in contrast to the more detailed monthly and quarterly assumptions used by other versions inthe Exl-Plan range). Get full details and trial copy downloads.

If you want to go into more detail with your strategic plan, especially from a marketing perspective, havea look at the following software-based expert systems:

Plan Write Expert Business Planner: Combined business plan tool and expert system to helpevaluate and develop your plan.

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Quick Insight - Business Idea Assessor: Expert system to help evaluate and improve a newbusiness idea.

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Business Insight - Strategy Evaluator: Sophisticated expert system for evaluating, developingand comparing business and marketing strategies.

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Take a moment to complete or view the results of these surveys:

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When using these calendars, confine entries to planning anddevelopmental issues rather than routine matters which can bedetailed in other media. The aim of these calendars is to ensurethat planning issues are given a priority and prominence.

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Our Exl-Plan range of integratedmonthly/quarterly planners includes Exl-PlanBasic which uses annual assumptions to generatecomprehensive 5-year projections. This simple,low-cost version (US$29) will meet manybusiness planning needs. Get details, downloadfree trial copy or buy & use now.

Also available is a completely free version,Exl-Plan Free, which is identical to Basic butprojects for just two years ahead. Details and freedownload.

The Free and Basic versions of Exl-Plan arecomplemented by other more detailed, powerfulversions of Exl-Plan. Get details and downloadtrial copies.

All versions of Exl-Plan include a free 150-pageBusiness Plan Guide & Template (for Word).



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Page Contents1. Introduction to Exl-Plan Range

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1. Introduction to Exl-Plan Range

Exl-Plan is a range of powerful,easy-to-use template packages for preparing comprehensive financialprojections for a business plan, budgets etc. for one, two, three, five or sevenyears ahead. You can also use it as a tool for strategic and corporateplanning, raising finance, business restructuring and financial appraisalswithin almost any size and type of business. Click thumb opposite to seeExl-Plan's welcome screen with special menus and buttons.

Fast Facts

Name: Exl-Plan (nineversions and US/Can &UK/Internationaleditions).

Function: Excel template for

multi-year income,cashflow & balance sheetprojections with Word templatefor business plan.

Uses: Business plans,budgets, raising finance& strategic planning.

For: Managers,consultants, entrepreneurs& startups.

Benefits: Saves time &effort. Easy-to-use.Expandable. Providesknow-how & improvesplanning.

System: Windows 95/98/Me/NT/2000/XP/Vista/Win7with Excel 5,7,8,95,97,2000,XP,2003,2007,2010.

Prices (US$): Free, 29,49, 89, 129, 169, 209, 249or 289.

Introduction Business Plan Software, Template, Financial Projections, Cash Flow Plans & B...sh flow, cash flow management, cash flow software, cash flow model, cash flow projections

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The Exl-Plan range (Free, Basic, Micro, Lite, Pro, Super, Super Plus, Ultraand Ultra Plus) is available using either UK/ International or US/Canadian accounting conventions - eighteen variants in all.

Exl-Plan is extremely flexible and is being used in over a hundred countrieswith the USA, Canada, UK, Australia and South Africa predominating.

Quick Guide to Exl-Plan Versions

See Also: Cashflow Planfor rolling 12-monthprojections.

Buy + Use NowDownload + Try

All these variants have the flexibility to handle manufacturing, distribution and service businessesand they are suitable for planning new ventures as well as established firms of all sizes - see Selectingthe Right Versions in the FAQs for Newcomers.

Exl-Plan utilizes Excel (5, 7, 8, 95, 97, 2000, XP, 2003, 2007 or 2010) running on Windows(95/98/Me/NT/2000/XP/Vista/Win7).

As Exl-Plan incorporates extensive formulae (up to 33,000 !)and preprogrammed menus & buttons (over 200 items) you only need a very basic knowledge of Excelto prepare highly professional and presentable projections. If you are an advanced Excel user, you canutilize your expertise to enhance and expand Exl-Plan to meet particular needs - see Extending Exl-Planin the FAQs for Users. Click thumb opposite to see portion of a monthly Profit & Loss (IncomeStatement).

Exl-Plan incorporates comprehensive facilities and features. It is suitable for managers and businesspeople with minimal previous experience of financial or business planning as well as for experiencedplanners, accountants, consultants and model-builders.

Exl-Plan offers you lots of help and support. It contains extensive online help (130+ topics) along witha 90-page manual (Word or PDF format) and a series of Flash-based tutorials (running for 19 minutes)covering setting up Excel, getting started, the basics and using Quik-Plan. Manuals and tutorials areincluded in the download files for all versions of Exl-Plan. Optional printed 115-125 page spiral-boundmanuals (7" x 9") are also available for the Micro, Lite, Pro, Super, Super Plus, Ultra and Ultra Plusversions/editions.



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For your business plan, all versions of Exl-Plan include a free BusinessPlan Template for Word (48 pages - click thumb opposite to enlarge view) and a complementaryGuide (supplied as a 90+ topic Help file and as a 100+ page PDF file for printing).

Have a look at the advantages of using Exl-Plan and how it can save your time and effort, and improveyour planning and results. Why develop your own spreasheet planner (and re-invent the wheel) whenwe offer a fully-developed planner which you can buy and use now?

You can get more detailed information and free trial versions downloads. Purchase prices and upgradefees for Exl-Plan are as follows:

Exl-Plan: Prices & Upgrade Fees (US$)Free Basic Micro Lite Pro Super Super Plus Ultra Ultra PlusFree 29 49 * 89 * 129 * 169 * 209 * 249 * 289 *

Register Buy and Use Now

* Optional printed manual US$20. Fees include Priority Airmail delivery worldwide.

Top of Page Buy & Use Now Download

2. When to Use Exl-PlanExl-Plan is a software tool which you can use for preparing financial projections for a business.These projections are required when a new or established business is:

preparing a business plan,●

making cashflow projections,●

exploring development options,●

planning major developments or diversifications,●

constructing budgets,●

developing strategies,●

raising external finance,●

exploring an acquisition and so on ...........●



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You can easily integrate Exl-Plan's output into a business plan, or similar document, being compiledwith Microsoft Word. Have a look at Free-Plan, our free Business Plan Guide and Template, to seehow this can be done.

Also, you can use Exl-Plan to make first-cut projections beforemaking a more detailed plan - it runs satisfactorily with minimal assumption values. In addition, itincorporates an unique facility called Quik-Plan which greatly simplifies and speeds up thecompilation of high-level three-five year annual projections (click thumb opposite to see the range ofplanning tools built into Exl-Plan).

Get more detailed information and free trial version downloads. If you propose to download a trialversion of Exl-Plan, this short Quick Start Guide will help you get started.


Note: If you need cashflow projections covering just 12 months, have a look at CashflowPlan, our range of fully-integrated cashflow planners which generate projections for 12months ahead and incorporate a roll-forward facility to simplify regular updating ofprojections. Details and trial-version downloads.


3. Exl-Plan is Faster, Easier & BetterWith Exl-Plan, you get a better-built planner, with more features and facilities, in a fraction ofthe time and cost that it would take a very experienced spreadsheet user with a financialbackground to develop a planner from the ground up.

Which method do you think is likely to be the fastest, best way to prepare financial projections?

Excel with Exl-Plan Excel Alone




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1. Load Exl-Plan2. Enter assumptions3. Review results

No writing formulae, no formatting, no programming, notesting, no designing, no charting, no correcting, nomessing !

1. Design model2. Load blank workbook3. Layout worksheets4. Create assumption cells5. Design report formats6. Enter all formulae7. Format worksheets8. Create charts9. Develop menus10. Create shortcuts

11. Enter test data12. Correct errors13. Retest14. Enter assumptions15. Review results16. Check formulae17. Correct errors18. Test corrections19. Document model20. Review results

Moral: You don't need to reinvent the wheel. Use Exl-Plan ! Try it for free!



4. Benefits of Using Exl-PlanExl-Plan offers you many significant benefits including:

Save substantial time and money. With Exl-Plan, you only need to familiarize yourself with itsrange of variable and reports before you start entering assumptions and planning.

●

Exl-Plan is error-free, well-tested, robust, powerful and expandable. It is also clearlydocumented and supported.

●

You don't have to be a financial whizz-kid or spreadsheet rocket scientist to make detailedprojections and to explore complex scenarios with Exl-Plan.

●

Building and testing a comparable model to Exl-Plan could require hundreds (thousands?) ofhours of spreadsheet programming, worksheet formatting and formulae entry. In contrast, youcan be up-and-running with Exl-Plan in less than a hour.

●

If you already have a spreadsheet or financial background, you can use this expertise to expandand tailor Exl-Plan to handle special factors or to get into greater detail.

●









FinancialProjectionSoftware

Most importantly, Exl-Plan serves as a tool which allows you toconcentrate on the task of planning rather than programming. It frees you from having to writehundreds of formulae and routines and allows you to devote more of your precious time to researchingassumptions and evaluating the resultant projections. Used effectively, Exl-Plan can help you improveplans and performance. At the very minimum, it will help you to avoid costly mistakes which couldarise in the absence of clear plans. Click thumb opposite to see a typical Exl-Plan chart.

If you are new to planning, Exl-Plan gets your plan started with the minimum of fuss and maximum ofhelp. With a choice of nine versions (Free, Basic, Micro, Lite, Pro, Super, Super Plus, Ultra andUltra Plus), Exl-Plan places a simple but sophisticated financial planning tool on your desk,irrespective of size and stage of development of your business.

Quick Guide to Exl-Plan VersionsExl-Plan awarded5-Stars by ZDNet

In a nutshell, Exl-Plan gives you a better-built planner with more features and facilities in a fraction ofthe time and cost that it would take a very experienced spreadsheet user with financial background todevelop a planner from the ground up. Here's why.










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Brochure: PDF

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Cashflow ForecastingSoftware:

Introduction

Page Contents1. Introduction to Cashflow Plan Range

2. When to Use Cashflow Plan

3. Cashflow Plan is Faster, Easier & Better

4. Benefits of Using Cashflow Plan

1. Introduction to Cashflow PlanRangeCashflow Plan is a range of powerful, easy-to-use software packages forpreparing comprehensive monthly cashflow projections for 12 monthsahead. You can use it for cashflow planning, budgets, business planning,fund raising etc. for young & established businesses of all sizes and types.It incorporates a roll-forward facility to help you to speedily update theprojections every month. More powerful versions also include a tool forconsolidating projections.

Note: If you need projections extending beyond12 months for a business plan etc., you shouldhave a look at Exl-Plan, our range of

Fast Facts

Name: Cashflow Plan (sixversions).

Function: MicrosoftExcel-based template for12-month income, cash flow& balance sheet projectionswith roll-forward facility.

Uses: Cash flow planning,budgeting, raising finance,cash management.

For: Managers, consultants,entrepreneurs & startups.

Benefits: Easy-to-use.Expandable. Saves time &effort. Improves cashplanning.


Prices (US$): Free, 39, 79,119, 159 or 199.

See Also: Exl-Plan formulti-year projections.


Introduction Cashflow Plan, Cash Flow Plan, Cashflow Planner, Cash Flow Forecasts, Cash...nning, Business Planner, Business Plan, Business Plan Software, Business Plan Template,

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fully-integrated financial planners which cangenerate projections for months and quartersextending to three, five or seven years. Detailsand trial-version downloads.

Cashflow Plan will help plan your business's cash requirements,improve control over cashflows and conserve cash resources. It will beespecially useful if you need to forecast cashflows in the context of:

tight cash/profit margins●

limited financial resources●

planning for growth orradical change

●

compiling cash budgets●

preparing businessimprovement plans.

●

Cashflow Plan is pre-formatted to handle the very wide range of the variables and functions normallyencountered when preparing cashflow and financial projections. Based on your assumptions, it compilesdetailed, fully-integrated financial projections for the coming year on a monthly basis, and for theinitial three months on a weekly basis. It automatically produces 20+ pro-forma financial andmanagement reports together with numerous graphs for key variables. You can download free trialcopies of all versions of Cashflow Plan.

Cashflow Plan is available in six versions (Free, Micro, Lite, Plus, Super and Ultra) to enable you toselect the best planning tool to meet your business's needs. Each version can handle eitherUK/International or US/Canadian accounting conventions. Cashflow Plan is being used in over ahundred countries with the USA, Canada, UK, Australia and South Africa predominating. All versionshave the flexibility to handle manufacturing, distribution and service businesses. They are suitable forestablished businesses as well as startups and strategic business units within major corporations.Cashflow Plan is also ideal if you are a professional adviser, consultant, training organization, financialinstitution or enterprise support agency.

Quick Guide to Cashflow Plan Versions

Cashflow Plan runs as a powerful, easy-to-use template with Excel (versions 5, 7, 8, 95, 97, 2000, XP,2003, 2007 or 2010) using Windows (95/98/Me/NT/2000/XP/Vista/Win7).

You will find Cashflow Plan easy-to-use because all the formulae for financial calculations arepre-written; reports are reformatted and clearly laid out; menu structures follow logical sequences; andonline help is available to the user at all stages. As Cashflow Plan incorporates extensive formulae andpreprogrammed menus & buttons (about 150 items) you only need a very basic knowledge of Excel toprepare highly professional and presentable cashflow projections.







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Are you unclear about the importance of cash to your business and the difference between itscashflows and profits? Then, have a look at Making Cash Flow Forecasts. See also the Checklist forImproving Cashflow.

If you are an experienced Excel user, Cashflow Plan offers a familiar environment which you cantailor and expand to meet specialist needs and to utilize existing spreadsheet-based data without gettinginvolved in any extensive import/export procedures.

Irrespective as to whether you have minimal experience with financial and cashflow planning, or youare a seasoned planner, accountant, consultant or model-builder, Cashflow Plan will help sort out yourcashflow projections. It will save you time, effort, and money by letting you concentrate onmanaging your business's cash, rather than on building a new tool to generate your projections.

Have a look at more benefits of using Cashflow Plan.

Cashflow Plan is very well documented. It contains extensive online help (130+ topics) along with a100-page Word-based version of its manual and a series of Flash-based tutorials (running for 19minutes) covering setting up Excel, getting started, the basics and using Quik-Plan. Manuals andtutorials are included in the download files for all versions of Cashflow Plan. The Super and Ultraversions are also supplied with a Cashflow Plan Consolidator Guide which is included in the downloadfiles for Cashflow Plan Super and Ultra.

For additional guidance, you can watch several How to ... Tutorials (based on Exl-Plan which sharesmany common features with Cashflow Plan) covering the basics of setting up and using Cashflow Plan.

Purchase prices and upgrade fees for Cashflow Plan are as follows:

Cashflow Plan: Prices & Upgrade Fees (US$)Free Micro Lite Plus Super UltraFree 39 * 79 * 119 * 159 * 199 *

Register Buy and Use Now

* Optional printed manual US$20. Fees include Priority Airmail delivery worldwide.













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2. When to Use Cashflow PlanCashflow Plan is a software tool for preparing cashflow projections for a business. It will beespecially useful to your business if you need to improve its future net cashflow. Cashflow Plan willhelp you to plan cash requirements and thereby improve control over your business's cashflows and toconserve its cash resources. For more guidance, see the Checklist for Improving Cashflow and MakingCash Flow Forecasts.

Problem:More businesses fail for lack of cash

than for want of profit.

Solution:Buy Cashflow Plan now toanticipate your cash needs.

In addition to compiling detailed monthly cashflow forecasts, Cashflow Plan automatically generatesfully-integrated income statements (profit and loss accounts) and balance sheets on a monthly basis.This makes Cashflow Plan very suitable for many other purposes where you may need 12-monthprojections:

preparing shorter term business plans,●

exploring development options,●

constructing budgets,●

assessing strategies,●

raising external finance and so on ........●

Also, you can use Cashflow Plan for first-cut cashflow projections before getting involved in detailedplanning - it runs satisfactorily with minimal assumption values. In addition, it incorporates an uniquefacility called Quik-Plan which greatly simplifies and speeds up the compilation of fully-integrated,high-level 12-month projections (cashflows, income statements and balance sheets).

Get more information or download a free trial version to see Cashflow Plan for yourself. If you plan todownload, this short Quick Start Guide will help you get started.


You can easily integrate Cashflow Plan's output into a planning document compiled with MicrosoftWord. For an example of this, have a look at Free-Plan.

Note: If you need projections extending beyond 12 months for a business planetc., you should have a look at Exl-Plan, our range of fully-integratedfinancial planners which can generate projections for months and quartersextending to three, five or seven years. Details and trial-version downloads.












3. Cashflow Plan is Faster, Easier & BetterWith Cashflow Plan, you get a better-built planner with more features and facilities in a fraction ofthe time and cost that it would take a very experienced spreadsheet user with a financial background todevelop a comprehensive planner from the ground up.

Which method do you think is likely to be the fastest, best way to prepare your cashflow projections?

Excel with Cashflow Plan Excel Alone1. Load Cashflow Plan2. Enter assumptions3. Review results

No writing formulae, no formatting, no programming, notesting, no designing, no charting, no correcting, nomessing !

1. Design model2. Load blank workbook3. Layout worksheets4. Create assumption cells5. Design report formats6. Enter all formulae7. Format worksheets8. Create charts9. Develop menus10. Create shortcuts

11. Enter test data12. Correct errors13. Retest14. Enter assumptions15. Review results16. Check formulae17. Correct errors18. Test corrections19. Document model20. Review results

Moral: You don't need to reinvent the wheel. Use Cashflow Plan ! Trybefore you buy here !


4. Benefits of Using Cashflow PlanCashflow Plan offers you many significant benefits including:

It saves substantial time and money. With Cashflow Plan, you only need to familiarize yourselfwith its range of variable and reports before you start entering assumptions and planning.

●

Cashflow Plan is error-free, well-tested, robust, powerful and expandable. It is also clearlydocumented and supported.

●

You don't have to be a financial whizz-kid or spreadsheet rocket scientist to make detailedprojections and to explore complex scenarios with Cashflow Plan.

●

Building and testing a comparable model to Cashflow Plan could require hundreds (thousands?)of hours of spreadsheet programming, worksheet formatting and formulae entry. In contrast, youcan be up-and-running with Cashflow Plan in less than a hour.

●

If you already have a spreadsheet or financial background, you can use this expertise to expandand tailor Cashflow Plan to handle special factors or to get into greater detail.

●













Most importantly, Cashflow Plan serves as a tool which allows you to concentrate on the task ofcashflow planning rather than programming. It saves you from having to write hundreds of formulaeand routines and allows you to devote more of your valuable time to researching assumptions andevaluating the resultant projections. Used effectively, Cashflow Plan can help improve cash flow andconserve scarce cash resources.





In addition to generating the 12-month projections, Cashflow Plan includes tools and facilities whichwill help you to:

create 12-week cashflow projections (based on the initial three-month projections);●

roll projections forward on a monthly basis (to save the task of reenteringassumptions);

●

explore 'what-ifs' in respect of incremental changes in inventory, receivables andpayables;

●

and do sensitivity analysis based on variations in sales volumes/prices, costs andoverhead expenses.

●

If your business is new to cashflow planning, Cashflow Plan allows you to start planning with theminimum of fuss and maximum of help. With a choice of six versions (Free, Micro, Lite, Plus, Superand Ultra), Cashflow Plan places a simple but sophisticated cashflow planning tool on your desktop,irrespective of size and stage of development of your business.

In a nutshell, Cashflow Plan offers you a better-built cashflow planner with more features andfacilities in a fraction of the time and cost that it would take a very experienced spreadsheet userwith financial background to develop a planner from the ground up. Here's why.







CashflowForecasting

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BusinessPlan

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Business Plan Software:Plan Write Business Planner

Page ContentsOverview1.

Big Benefits2.

Features3.

Online Demo4.

Frequently Asked Questions5.

User & Media Reviews6.

Buy & Use Now7.

1. Overview

Fast Facts

Name: Plan Write BusinessPlanner.

Function: Comprehensiveplan writer with extensiveadvice, facilities & features.

For: Startups, managers,entrepreneurs & consultants.

Benefits: Improves planning.Saves time & effort. Helpsprepare plan & get results.

System: Windows 95/98/Me/NT/2000/XP/Vista/Win7.

Price: US$ 129.95 todownload.

See Also: Plan Write ExpertBusiness Planner & QuickInsight.

Buy + Use Now

Business Plan Software: Business Plans, Business Planning, Business Planner

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PlanWrite Business Planner is a comprehensive software tool for preparinga complete business plan. Aimed at first-time planners and planningprofessionals alike, it incorporates an extensive business plan structurelinked to a text processor, financial spreadsheet, extensive graphics andonline help including wizards, examples, samples and external links.Plan Write Business Planner requires Windows95/98/Me/NT/2000/XP/Vista/Win7.

Plan Write Business Planner is fully-customizable and includesfacilities for exporting to Microsoft Word, Excel and PowerPoint as wellas to the PDF format and the Internet.

An alternative to Plan Write Business Planner is Plan Write ExpertBusiness Planner which, in addition to all the features of Plan WriteBusiness Planner, incorporates an expert system (based on QuickInsight) to help assess business strategies and tactics as the precursor todrafting a plan.



Top of Page Buy & Use Now Online Demo

2. Big BenefitsPlan Write Business Planner brings big benefits to the planning process:

Uses a proven business plan structure which can be readily changed to suit your specific needs.●

Speeds up the preparation of a business plan that will get the right results and reactions frommanagement, investors, lenders.

●

Ideal for start ups as well as established businesses for seeking approvals, raising venture capitaland securing loans.

●

Helps correctly position your business and create robust, realistic plans that can be implemented.●

Easy to use and loaded with help and advice with examples and wizards to guide you through allthe steps of writing a business plan.

●

Here is a selection of major organizations that have benefited from the Plan Write and Insight expertplanning software.


3. FeaturesKey features of Plan Write Business Planner include:





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Business Plan Wizard to guide you●

Step by step instructions●

100's of examples to save time●

Complete financials●

Automatic 3D Color Charts●

Format preferred by banks/investors/SBA●

Customized for your business●

Export to Word, Excel, PowerPoint●

QuickBooks Pro interface●

Library of sample business plans●

Expert Analysis Plan Audit and Review●

Designed for Windows XP●

MS Word export compatible●

MS Excel format financials●

MS PowerPoint presentation●

Export to PDF and HTML●

Industry Profiles●

Milestones●

Single or multiple authors●

Team Collaboration●

Publish your plan to the web●

Save any plan as a template●

Other features include:

Wizards walk youthrough the process: Your business plan is easy to write as Plan Write Business Plannerwizards step you through the business plan creation process giving explanations for eachbusiness concept.

100's of examples: Detailed examples are included for every item of an effective businessplan.

Sample business plans: Actual business plans from real businesses as judged by venturecapitalists as the best business plan presentation. Examples, checklists and expert advicehelp you avoid writer's block.

Tailored to your business: Built-in wizards guide you through the process and shape yourplan to reflect the unique character and goals of your business.



Complete financials: Automatically generates your financial statements, in the formatexpected by your banker or investor. Including income statements with compatible cashflow and balance sheet reports as well as a complete set of financial ratios.

Evaluate "what ifs" on key financialvariables: Instantly modify and examine the effect of variables such as getting an earlieror larger loan, maintaining a smaller inventory, or extending your accounts payable, givingyou a successful financial projection.

Color charts and graphs: Clarifying complex ideas such as profit and loss, break-evenprojections, revenue and profit per employee and cash flow projections, making them easyto understand.

Generates PowerPoint presentation: Automatically generates your PowerPointpresentation in the template you choose. Your business plan is well written andprofessionally presented.

Track achievements: Plan Write Business Planner allows you to set objectives, ormilestones so that management can easily track the key activities, the person responsible,the schedule, and the cost.


4. Online Demo







This Online Demo of Plan WriteBusiness Planner shows, in a few minutes, how it can be used to write a professionally structuredbusiness plan that provides direction for internal management and describe your business to potentialinvestors. View the Online Demo now.

Contents of DemoBusiness Planning WizardBusiness Plan WizardBusiness Planning SamplesFormat of Business PlanExecutive SummaryCustomizable Business PlannerBusiness Plan PresentationFinancial ProjectionsHelp with ProjectionsFinancial StatementsQuickBooks InterfaceIndustry Profiles for Business

Charts for Business PlanAuditing Business PlanChecking Business PlanWriting Business PlanCollaborative Business PlanningExport Business PlanFinancial StatementsFinancial ProjectionsOrganization ChartBusiness Plan TemplateImplement Business PlanBuy Business Planner


5. Frequently Asked QuestionsWhat is the difference between Plan Write Business Planner and Plan Write Expert Business

































Planner?

Plan Write Business Planner guides you through the creation of a professional qualitybusiness plan.

Plan Write Expert Business Planner includes all the features found in Plan Write BusinessPlanner plus a powerful expert system and knowledge base. These extra tools analyzeyour plan and provide expert advice on over 35 key business concepts. You receive arating of success potential, a summary of actions needed to improve the business,observations critical to improving the business strategy and over 30 charts illustrating howyour plan measures up. The result is a well-documented, bulletproof business plan able toundergo the closest scrutiny.

Require UK/International accounting layouts for your financial projections?

Plan Write Business Planner uses US accounting formats. If you need more localizedfinancials, consider using Exl-Plan for your business plan projections. It is available inseveral versions (Basic, Micro, Lite, Pro, Super, Super Plus, Ultra and Ultra Plus) tosuit different sizes of businesses with accounts laid out using either US/Canadian orUK/International formats. It also handles value added taxes (VAT) and goods & servicestaxes (GST). If desired, you can use Exl-Plan in conjunction with Plan Write BusinessPlanner or Plan Write Expert Business Planner.


Wish to complete detailed financial projections in a familiar spreadsheet environment?

Exl-Plan is an Excel-based business financial planner and that can be expanded by a user tohandle detailed assumptions and projections. It generates fully-integrated financialprojections (income statements, cash flows, balance sheets, ratios and charts) for up toseven years ahead. Eight versions (each available as US/Canadian or UK/Internationaleditions) have been released to suit different sizes and types of business. These areavailable on a try-before-you-buy basis and accompanied by a 150-page Business PlanGuide and Template for Word. Details, downloads, FAQs & upgrading.

If desired, you can use Exl-Plan in conjunction with Plan Write Business Planner or PlanWrite Expert Business Planner.

Need a marketing plan as part of your business plan?

Plan Write Business Planner and Plan Write Expert Business Planner both includesubstantial sections devoted to the sales/marketing sections of a business plan. However, ifyou need a stand-alone marketing plan, consider the following:

Plan Write for Marketing contains all the tools for writing a comprehensivemarketing plan but lacks an expert system.

●








Plan Write for Sales which, in addition to Plan Write for Marketing's facilities forwriting a marketing plan, incorporates an expert system to help assess and formulatemarketing strategies and sales tactics.

●

Plan Write for Hi-Tech Marketing is similar to Plan Write for Sales but its expertsystem has been tailored for technology-based businesses.

●

Insight for Sales Strategy includes an expert system that helps businesses improvetheir sales conversion rates and revenues.

●

Plan Write for Pricing contains an expert system to help determine the optimal pricefor a product or service.

●

Seek an expert system to evaluate your business strategies?

There are two main options:

Business Insight is a powerful and sophisticated expert system for evaluatingbusiness strategies for larger businesses. It includes a facility to generate a detailedmarketing plan linked to the Plan Write for Marketing.

●

Quick Insight is ideal for assessing product and market proposals for new andsmaller businesses. It is considerably less detailed than Business Insight but retainsthe essential elements and facilities.

●

Is this software designed for a product or a service industry?

Plan Write Business Planner is not industry specific and works equally as well whetheryou offer a product or service – or a combination of both.

Does this software come with a guarantee?

Yes. This software comes with a 30-day money back guarantee. If you purchase a productand are not satisfied, you may return it within 30 days from the date of purchase and wewill refund the full purchase price.

Does your software come with technical support?

Yes. Our software comes with free, knowledgeable technical support for the lifetime of theproduct.

Is this software available in a MAC version?

Sorry, no. This software is designed for use only with PCs running Windows.

Need more help to select the most appropriate planning package?

Use this Contact Form to explain your needs or utilize our Online Business Plan AdviceService.














6. User & Media ReviewsStrategic Planning Analyst, Advanced Micro Devices:

Plan Write for Business provided complete flexibility to organize the outline andassociated text, charts and spreadsheets.

Owner, Fast Set Coatings, Inc.:

Plan Write for Business saved us untold man hours, was loaded with examples, and forcedus to think of things we wouldn't have considered otherwise in our business plan.

President, J. D. Associates:

The combination of Plan Write for Business’ detailed outline, professional word processor,integrated spreadsheet with financial templates and graph generator allowed me to create abusiness plan that impressed even the most demanding investors.

Consultant, Diamondback International Inc.:

Using Plan Write for Business, I am able to add, delete and modify outline topics,personalizing the Business plan to my client's business. It provides an excellent outline oftopics appropriate for any business plan.

Newsweek: Thom Foulks - It's All in the Plan

Just a decade ago, preparing a business plan involved a lot of drudgery. No longer. Now, arich variety of software tools can help guide you though the process. In this article we lookat six products that do everything from helping you summarize your business goals toprojecting revenues and profits. They can show you examples of successful business plansand help you find potential problems in your plan before it ever hits the desk of a lender orinvestor. All of the products discussed here can guide you through the planning process.The principal differences between products are the additional software they require (onlyPlan Write is truly stand-alone) and whether they organize primarily financial or narrativeinformation....

Plan Write is a sparkling Windows product that includes a full-powered word processor(complete with spelling checker) and business plan outliner, along with an integratedspreadsheet-charting module. With such helpful features as a business term glossary andadvice for various elements of your plan, you should be able to prepare every documentyou need from within Plan Write. Of all the products in this group, its final report mostclosely meets the criteria experts define as critical. It's our top choice.

Computer Shopper: Gregg Kaizer - Plan Write Prepares You for Business

Be prepared should be the slogan for business, not just the Boy Scouts. Plan Write from



Business Resource Software helps you assemble a solid business plan before you openyour doors. This simple integrated package - word processor, spreadsheet and chartingmodule - hands you a ready-to-go plan outline and the tools necessary to flesh out ablueprint specific to your business.

Plan Write's business plan outline alone makes it worthwhile for budding entrepreneurs.The outline is augmented with numerous spreadsheet templates (including Profit & Loss,Cash Flow, and Balance Sheets) and detailed documentation. You simply step through theoutline, expanding on each item by typing detailed notes and explanations, fiddling withnumbers, and producing illustrative charts from spreadsheets. By the time you've gonethrough the entire outline, you have a polished plan.

CPA Software News: San W. Stearman - Detailed Summary Plan Shown Side by Side

Plan Write is a fully integrated Windows program, with its word processor and its ownspreadsheet. Plan Write's approach to the plan narrative is the best of any softwarereviewed. The Business Plan is presented in outline form. The user can add, delete orrearrange the outline to suit the needs of their individual plans - a definite advantage overother approaches. The outline can be shown in a summary view or in various levels ofdetail. The word processor can add tables and insert graphs and spreadsheets. It is easy touse for anyone familiar with MS Word, with capabilities like spell check. Takingadvantage of Windows' power, the handbook suggests keeping both your current plan andthe sample detailed plan in separate side-by-side windows.

Many planning packages have pre-defined outlines, Plan Write's flexible outlines are alogical approach to developing a narrative. The word processing and spreadsheetcapabilities are impressive for an integrated package, and Windows lets the user generate aprofessional looking document.

Home Office Computing: Joel T. Patz - Step by Step Business Planning

The programs in this roundup aim to help you do more than just put words and numbers onpaper. They help you organize your work, forcing you to think logically about many of theissues confronting new business efforts. Most offer tips and suggestions about what tothink about when preparing a plan, then help you assemble the package into a crediblewhole. Some even provide business tips and a list of resources you can consult for moreinformation.

The programs take one of two approaches: templates or interactive applications. The firstprovides templates for the word processing and spreadsheet programs you're alreadyfamiliar with. In terms of the quality of the guidance and the final document, however, wefound the template approach less helpful than the second category of programs. Theinteractive group guides you through building a custom plan with an interview or helps youdevelop text and numbers by following examples displayed in front of you. The interactiveproducts generally use a split screen for the text or financial sections of your plan, offeringexplanations or samples in the screen's top half and a custom word processor or



spreadsheet in the lower half. The programs then consolidate text, graphics, and attractivecharts into a printable plan, with content and format quality varying from good toexcellent.

For this buyer's guide, we looked at nine Windows and Macintosh business planpackages... Plan Write is the best product for guiding you through the stormy waters ofcreating a business plan. Even before you start the interactive interview process, Plan Writecan step you through a basic break-even analysis. The program asks you for the unit cost,average unit price, number of units you'll sell and operating expenses, then displays abreak-even chart with explanatory text customized to your situation.

The plan writing process starts when you click the Text button. The screen offers anexplanation of each topic (called a Rationale) and an example at the top of the screen,either of which you can copy complete with a single mouse to the bottom half of thescreen, where you compose your text. You can also switch to a full-screen view and usethe text editor.

When dealing with financial information, Plan Write stands apart from the rest. You entervalues one-by-one on some screens, viewing an explanation for each entry at the top. Asyou progress, you'll soon see a summary spreadsheet that consolidates all the previousinformation. When we wanted to change a value, we just clicked on it in the summaryspreadsheet and Plan Write took us to the original data entry screen, then let us jump backto the summary. That's unprecedented in plan writing software. For screens that let youenter data for an entire year, you left-click the mouse button on the row header (such asRoyalties) to read an explanation of what should be included in this category.

Your financial data is instantly reflected in the good cross-section of charts. Double-click abar in a bar chart and Plan Write takes you back to the financial screen where that data wasoriginally entered; click on the Next button and you're back to your chart.

The program includes an excellent outline view for jumping between topics, and you caneven use it to insert new text topics, spreadsheets, or charts anywhere you like. If you'restumped for ideas, click on the Internet button for access to more than 100 Web sitescontaining tips for using the program, improving your business plan, and locatinginvestors.

Black Enterprise: Tonia L. Shakespeare - Planning for Success

If a business owner plans properly, he or she can thwart problems before they occur. Manyentrepreneurs see the formulation of a business plan as overwhelming, much like applyingfor a business loan. But devising a business plan doesn't have to be daunting. A businessplan is nothing more than a navigating tool. It can steer you in many directions: towardinvestors, expansion capital or simply help keep you charted on the right course. One wayto demystify the business plan is to use business planning software. With softwareprograms designed for the neophyte business owner as well as the established CEO, theoutlines needed to develop business strategies are no longer limited to detailed self-help



books. ...

Maybe you're looking for more detailed analysis. Well, if a rational approach appeals toyou, check out Plan Write. This software program is ideal for any commercial enterprise.Combining an integrated outline word processor, text editor and spreadsheet facility, PlanWrite offers a thorough analysis of a host of factors. Among these:organizational/personnel, employee age range, medical benefits and vacationdays/holidays; the competition, image, years in business and service/warranty record; andfinancials, profit and loss, balance sheet and cash flow.

Particularly appealing are the active windows. You can access various files and displaythem on screen, while still using the keyboard to type in new information. That way you'reable to stay focused on the information you want to include in your business plan. Adefinite plus is the option of having the outline of your business plan and text window openat the same time. Plan Write can also import information from outside spreadsheets. For areasonable price, this business planning software is fully capable of producing acomprehensive financial report.


7. Buy & Use NowBuy and download Plan Write Business Planner now via BRS's website as follows:

Click the appropriate yellow Order button below. At the BRS product page, click the orange Addto Cart button and click Proceed to Checkout.

1.

Once payment has been authorized, you will be instructed on the download procedure and sent aproduct registration number by email. Note that typical file sizes are about 20 Meg.

2.

Product Description Price(US$)* Buy Now

Plan Write Business PlannerComprehensive tool tohelp write professionalbusiness plan.

129.95

See also:

Plan Write ExpertBusiness Planner

Expert system based onPlan Write BusinessPlanner plus elements ofQuick Insight.

229.95

Quick InsightFor assessing new productand service ideas fornew/smaller businesses.

229.95







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Entrepreneur Package plusBusiness Insight.Save US$ 207.85

1,177.00

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Manager Package plusQuick Insight, Plan Writefor Sales, and Insight forSales Strategy.Save US$ 419.70

1,655.00

* To download & use now. Includes a comprehensive electronic version of manual

View our terms and conditions applying to software purchases and trial version upgrades. Note our30-day refund guarantee. If based within the European Union, you may wish to check on the possibleapplication of Value Added Tax (VAT) to transactions.




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Business Plan Software:Plan Write Expert Business

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Benefit from Expert Guidance2.

Features3.

Online Demo4.



Buy & Use Now7.

1. Overview

Fast Facts

Name: Plan Write ExpertBusiness Planner.

Function: Comprehensiveplan writer with extensivefeatures & facilities. Built-inexpert adviser & analyst.


Benefits: Expert help toimprove planning & resultsand write business plan.



See Also: Plan WriteBusiness Planner, QuickInsight & Plan Write forSales.

Buy + Use Now

Expert Business Plan Software: Business Planner, Business Plan, Business Planning

http://www.planware.org/salepwe.htm (1 of 12) [30-05-2012 8:02:58 AM]




























Plan Write Expert BusinessPlanner is a comprehensive tool for preparing a professional businessplan as well as an expert system (based on Quick Insight) for analyzingyour plan and providing expert advice on over 35 key business conceptsto improve your plan and ultimately your business.

Plan Write Expert Business Planner incorporates all the tools andfacilities included in Plan Write Business Planner. These include anextensive business plan structure linked to a text processor, financialspreadsheet, extensive graphics and online help including wizards,examples, samples and external links. Its expert system is based on theresult of many years of research using the works of over a hundredexperts in business, planning and strategy.

Plan Write Expert Business Planner is fully-customizable and includesfacilities for exporting to Microsoft Word, Excel and PowerPoint as wellas to the PDF format and the Internet. It requires Windows95/98/Me/NT/2000/XP/Vista/Win7.

Plan Write Expert Business Planner is ideal for start ups as well asestablished businesses for seeking approvals, raising venture capital andsecuring loans. Note that Plan Write Business Planner containscomprehensive facilities for writing a business plan but lacks the expertsystem included in Plan Write Expert Business Planner.




2. Benefit from Expert Guidance

Plan Write Expert Business Planner brings big benefits to theplanning process:

Your business plan is audited and effectively critiqued by industry experts.●

As you work through the expert interviews and assessments, you are challenged to justify plansand shown how they can be improved.

●

You can assess alternative strategies and tactics and made aware of new options.●

Proven business plan structure which can be readily customized to suit your specific needs.●

You will produce a plan that will get the right results and reactions from management, investors,lenders.

●

You will be helped to correctly position your business and to create robust, realistic plans that canbe implemented.

●

The software is easy to use and loaded with help and advice and with examples and wizards toguide you through all the steps of writing a business plan.

●



3. Features





http://www.planware.org/pwe1/pwe01.htm?pl=top







Plan Write Expert Business Planner contains all thefeatures of Plan Write Business Planner including:

Business Plan Wizard to guide you●

Step by step instructions●

100's of examples to save time●

Complete financials●

Automatic 3D Color Charts●

Format preferred by banks/investors/SBA●

Customized for your business●

Export to Word, Excel, PowerPoint, HTML●

QuickBooks Pro interface●

Library of sample business plans●

Expert Analysis Plan Audit and Review●

Designed for Windows XP●

MS Word export compatible●

MS Excel format financials●

MS PowerPoint presentation●

Export to PDF and HTML●

Industry Profiles●

Milestones●

Single or multiple authors●

Team Collaboration●

Publish your plan to the web●

Save any plan as a template●

In addition, it provides expert help to evaluate your business strategies. As part of the planning process,it asks you to characterize your business in every key area that could affect its success. The factorsconsidered include:

The EnterpriseDifferentiationCompetitiveAdvantageName RecognitionService & SupportMarket ShareAbility to PromoteStaying PowerOptions to AbandonPropensity to AttackSpeed of Response

The MarketMarket Life CycleMarket GrowthRateThreat ofSubstitutesDistributionChannelsDependableSuppliersEase of SwitchingMarket Segments

The EnvironmentGovernment ActionDemographicsTechnologyCultureEconomy

The ProspectsPrice SensitivityNegotiating StrengthImpact of FailureRisk of PurchasePrice Awareness



Ways to ObtainAdvantage

Your answers to the interviewquestions are compared against a Knowledge Base of proven principles of business success. ThisKnowledge Base is a combination of the business models published by 100+ business strategy expertssuch as Michael Porter Five Forces Model, Competitive Advantage, Boston Consulting Group Matrixand GE Business Screen.

The Expert System makes observations about your business which are supported by a list of factorsconsidered in the analysis. Each factor is scored and weighted. You can easily see the strengths andweaknesses of your strategy. Every observation made by the Expert System can be traced to itsunderlying assumptions - you can easily see how each answer you gave to describe your strategyinfluences the potential for success. Expert analyses performed on your plans include:

A rating of the success potential:This evaluation looks intently at theappropriateness of the industry, theviability and advertisability of youroffering, the potential to turn prospectsinto customers and the capabilities ofyour company to market the offering.

A summary of actions needed toimprove the business:Recommendations are provided tosupport your pursuing either a CostLeadership (low price), Differentiation(we're different) or Focus (we're unique)strategy.

Over 30 charts illustrating how theplan measures up to critical marketingand sales concepts:What are the environmental factors thataffect your business? What is yourmarket share versus the competition?Pricing Strategy? Competitive Position?Prospect/Customer Characteristics?Product/Service Positioning? Advertising& Promotion? Cash Cow vs. Dog?

And, the analysis is fully integratedinto the planning process:The application of the "expert system"intelligence to your data provides a rough



Observations critical to improving thebusiness and marketing strategy:Which areas of your business requireimmediate attention? Are there anyinconsistencies in your plan? What is thecurrent position of your majorcompetitors and are their future actionspredictable?

draft of the plan in areas where we'vebeen able to gather sufficientinformation. The language used isconsistent with that expected by seriousinvestors.

Plan Write Expert Business Planner generates dozens of charts to help you adapt your strategy toyour competitive environment. These charts can be added to your business plan to support anddocument your strategy for success.

When finished, your strategies will have been audited and critiqued by planning experts and you willhave a professional, high quality plan which should meet all the criteria of bank, sophisticated investors,business-support agencies, business managers, and most importantly - yourself!


4. Online Demo

This Online Demo of PlanWrite Expert Business Planner introduces the expert system and presents sample reports and charts. Italso shows how to capitalize on this expert help to write a professionally structured business plan tocover all the key issues relating to operations, management, marketing, projections and implementation.

Contents of Demo








Insight from ExpertsInterview & AnalysisStrengths & WeaknessesExpert System StrategyIndustry AttractivenessCompetitive AdvantagePosition EvaluationPrice Quality MatrixGE Business ScreenBoston Consulting Group MatrixReview Your StrategyBusiness Planning WizardBusiness Plan WizardBusiness Planning SamplesFormat of Business PlanExecutive SummaryCustomizable Business PlannerBusiness Plan Presentation

Financial ProjectionsHelp with ProjectionsFinancial StatementsQuickBooks InterfaceIndustry Profiles for BusinessCharts for Business PlanAuditing Business PlanChecking Business PlanWriting Business PlanCollaborative Business PlanningExport Business PlanFinancial StatementsFinancial ProjectionsOrganization ChartBusiness Plan TemplateImplement Business PlanBuy Expert Business Planner


5. Frequently Asked QuestionsWhat is the difference between Plan Write Business Planner and Plan Write Expert BusinessPlanner?

Plan Write Business Planner guides you through the creation of a professional qualitybusiness plan.

Plan Write Expert Business Planner includes all the features found in Plan Write BusinessPlanner in addition to a powerful expert system and knowledge base. These extra toolsanalyze your plan and provide expert advice on over 35 key business concepts. Youreceive a rating of success potential, a summary of actions needed to improve the business,observations critical to improving the business strategy and over 30 charts illustrating howyour plan measures up. The result is a well-documented, bulletproof business plan able toundergo the closest scrutiny.

Require UK/International accounting layouts for your financial projections?

Plan Write Business Planner uses US accounting formats. If you need more localized










































financials, consider using Exl-Plan for your business plan projections. It is available inseveral versions (Basic, Micro, Lite, Pro, Super, Super Plus, Ultra and Ultra Plus) tosuit different sizes of businesses with accounts laid out using either US/Canadian orUK/International formats. It also handles value added taxes (VAT) and goods & servicestaxes (GST). If desired, you can use Exl-Plan in conjunction with Plan Write BusinessPlanner or Plan Write Expert Business Planner.


Wish to complete detailed financial projections in a familiar spreadsheet environment?

Exl-Plan is an Excel-based business financial planner and that can be expanded by a user tohandle detailed assumptions and projections. It generates fully-integrated financialprojections (income statements, cash flows, balance sheets, ratios and charts) for up toseven years ahead. Eight versions (each available as US/Canadian or UK/Internationaleditions) have been released to suit different sizes and types of business. These areavailable on a try-before-you-buy basis and accompanied by a 150-page Business PlanGuide and Template for Word. Details, downloads, FAQs & upgrading.

If desired, you can use Exl-Plan in conjunction with Plan Write Business Planner or PlanWrite Expert Business Planner.

What other expert systems are available?

Business Insight is a powerful and sophisticated expert system for evaluating businessstrategies for larger businesses. It includes a facility to generate a detailed marketing planlinked to the Plan Write for Marketing.

Quick Insight is ideal for assessing product and market proposals for new and smallerbusinesses. It is considerably less detailed than Business Insight but retains the essentialelements and facilities.

For expert help on preparing a marketing plan, see:

Plan Write for Sales which contains facilities for writing a marketing plan as well asan expert systems to help assess and formulate marketing strategies and sales tactics.

●

Plan Write for Hi-Tech Marketing is similar to Plan Write for Sales but its expertsystem has been tailored for technology-based businesses.

●

Plan Write for Pricing contains an expert system to help determine the optimal pricefor a product or service.

●

Insight for Sales Strategy includes an expert system that helps businesses improvetheir sales conversion rates and revenues.

●













Plan Write Expert Business Planner is not industry specific and works equally as wellwhether you offer a product or service – or a combination of both.










6. User & Media ReviewsSystem Strategy Department, IBM:

The expert analysis pointed out several things about our business that we had failed toconsider. The software looked at our strategy from a different angle than we did. Based onthe analysis, we could change directions before committing our funds.

Kettley Publishing - Financial Services Software:

I have been a user of Plan Write Expert Business Planner for some time now, and havebeen extremely satisfied. Your product helped me lead the marketing organization fromstartup to market dominance in a very short period of time. My company works in afinancial services niche market so our sales don't compare to your Fortune 500 successstories but nonetheless I am a very satisfied customer.

Windows Sources: Michael Zulich - Plan Write Helps You Plan It Right

The hardest part of starting a business is getting your banker to approve a loan. Usually,the bank wants a detailed business plan, and if you don't have an MBA, that can be anintimidating prospect. Unless you use Plan Write Expert Edition, which gives youeverything you need to write a complete business plan. Plan Write starts the planning








process by asking a series of questions about your business idea and your competition.When you've answered the questions, you get a detailed analysis, including charts, thatpoints out the strengths and weaknesses of your business and offers a series of suggestionsfor improving your concept. Plan Write then takes you through the process of actuallywriting your business plan. Plan Write Expert Edition is a must-have program if you'retrying to start a business and don't have time to go back to graduate school.

Black Enterprise: Tariq K. Muhammad - The Write Software for Business Plans

For years, it's been nothing more than an idea, but now the time is right to take your dreamof running your own business from wishful thinking to reality. The first step, the businessplan, is the most crucial... a plan is a living document that details the expected growth,revenues and scope of your business. Where do you start? Knowing what should beincluded in the plan is difficult to decide, especially for novices. However, with the help ofPlan Write Expert Edition, even a novice can create a professional, well-presented businessplan. Like many similar applications, Plan Write walks you through a business plan, butthat's where the similarities end. Not merely a fill-in-the-blanks template, it analyzes yourplan and provides advice on marketing strategy to aid your plan and your business...Questions about the life cycle of your particular market and the reliability of your channelsof distribution go beyond the building of a business plan to the real life concerns ofrunning a business.

Once you get into the meat of the program, it tests your knowledge of your market byasking questions about competitors' offerings, their quality, perception in the marketplaceand potential for creating an advantage by employing various marketing strategies. TheAdvisor, by far the most useful aspect of the program, is ever ready to analyze your planand provide suggestions. When the plan is complete, the advisor presents an analysis thatincludes a rating of your success potential, a summary of necessities to improve yourbusiness and observations critical to improving your business strategy. Plan Write standsout among business plan programs because it does more than just write your plan. It has abuilt-in advisor that allows you to create a comprehensive document with all of the kinksworked out before you present it to a prospective investor.

PC World: John P. Mello - Plan Write: Expert Help for Business Plans

Plan Write Expert Edition supplies you with professional advice on how to create a viablebusiness plan, even if you're a beginner. What makes this $230 product different fromothers in the category is its knowledge base--a collection of information you use to testassumptions about your business. You can then adjust your plan accordingly. You enterfacts about your product or service, target market, financial situation, competition, pricingstrategy, and so forth. The program then makes specific recommendations and warns ofany weak spots. The knowledge base uses some of the same business-strategy researchfound in the company's other well-regarded program, Business Insight. Of course, PlanWrite gives you the tools to create your plan, including financials. An outline viewexplains exactly what should be in each section. The only con to this approach: It may betoo confining for creative types.



BusinessPlan

Software


Note: The user and media testimonials relating to Plan Write Business Planner and Quick Insight alsoapply to Plan Write Expert Business Planner.


7. Buy & Use NowBuy and download Plan Write Expert Business Planner now via BRS's website as follows:


1.


2.


Plan Write Expert BusinessPlanner

Expert system based onPlan Write BusinessPlanner plus elements ofQuick Insight.

229.95

See also:

Plan Write BusinessPlanner

Comprehensive tool tohelp write professionalbusiness plan.

129.95

Quick InsightFor assessing new productand service ideas fornew/smaller businesses.

229.95



Includes: Plan WriteExpert Business Planner,Plan Write for Pricing, andPlan Write for Marketing.Save US$ 100.85

489.00


Entrepreneur Package plusBusiness Insight.Save US$ 207.85

1,177.00









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Buy Now


Manager Package plusQuick Insight, Plan Writefor Sales, and Insight forSales Strategy.Save US$ 419.70

1,655.00






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Strategic Planning Software:Business Insight - Strategic

Plan Evaluator


Benefit from Expert Help2.

Features of Business Insight3.

More About Business Insight4.

Online Demo & SampleReport

5.



Buy & Use Now8.

1. Overview

Fast Facts

Name: Business Insight.

Function: Powerful expertsystem to evaluate &enhance marketing strategies.

For: Marketing & salesmanagers, analysts &consultants.

Benefits: Identifies problems& opportunities. Offersexpert solutions to improveplans & potential.



See Also: Quick Insight, PlanWrite for Marketing, PlanWrite for Sales, Plan Writefor Pricing & Insight forSales Strategies.

Buy + Use Now

Strategic Plan, Strategy Planning, Business Strategies, Strategy Matrix, SWOT Analysis, Fi...orces, Group Matrix, Marketing Plan, Marketing Strategy, Michael Porter, Boston Consulting

http://www.planware.org/salebi.htm (1 of 19) [30-05-2012 8:03:04 AM]



































Business Insight is anexpert system for assessing and developing marketing and product/servicestrategies for larger businesses. By combining responses to questions withits built-in rules, it generates numerous conclusions about your business'sstrategies etc. These give unique insights into the complex relationshipsbetween hundreds of business concepts and enable strategies to bereviewed, modified and enhanced before implementation.

Business Insight includes separate knowledge bases for product- andservice-based enterprises. Its assessments can be exported to MicrosoftWord and PowerPoint as well as to the PDF format and the Internet.Windows 95/98/Me/NT/2000/XP/Vista/Win7 is required.

Other relevant software solutions include:

Quick Insight is a scaled-back version of Business Insightfor assessing marketing ideas and strategies for new andsmaller businesses.

❍

Plan Write Expert Business Planner incorporates a expertsystem based on Quick Insight for assessing marketingideas and strategies in addition to tools for compiling acomprehensive business plan.

❍

Plan Write for Sales contains facilities for writing amarketing plan as well as an expert system (based on QuickInsight) to help assess and formulate marketing strategiesand sales tactics.

❍





2. Benefit from Expert Help

Business Insight has been taughtthe principles of business strategy based upon the published works of dozens of experts and it appliesthis expertise to your market. Your dialog with Business Insight is equivalent to an in-depthengagement with an expert in strategic planning. You describe your business and the expert systemapplies its specialized knowledge to the unique circumstances of your market. Every recommendationfrom the expert can be justified by tracing the supporting rationale.

Business Insight questions your assumptions and validates or challenges your thinking in considerabledetail by:

offering observations on inconsistencies in your strategy or assumptions●

rating key functions that are critical to your enterprise●

suggesting the strongest and weakest aspects of your strategy●

presenting a no holds barred constructive criticism of your strategy●

assessing and chart your market position●

suggesting ways to improve your potential for success●

warning about factors that could cause problems●





http://www.planware.org/bi1/bi01.htm?pl=top


comparing alternative strategies for strengths and weaknesses●

discovering opportunities in your market and anticipate competitive threats●

scoring of your potential for success●

providing written analysis of your strategy.●

By using Business Insight, you make better decisions which reduce costs or improve revenues, or doboth.



3. Features of Business InsightKey features and elements of Business Insight include:

Business Insight starts work by asking questions on issues related to growth and operations ofyour business covering:

●

mission & visionproducts & servicessales & marketingadvertising & promotionorganization & traininghiring & compensation

management biographiesweb strategymarket segmentationcompetitive strengthsfinancials

Your answers are matched against a knowledgebase of proven business strategies to evaluate hundreds of marketing and business concepts asthey relate to your unique circumstances. Business Insight then uses information about yourcompany to create a unique model of your industry based on:

●








Michael Porter's Competitive Five Forces❍

GE Business Strategy Matrix❍

Boston Consulting Group Matrix❍

SWOT Analysis❍

Product Life Cycle Analysis❍

Pricing Strategy... and dozens of other models.

❍

This modeling results in a set of analyses. These provide a written critique of your strategy,observations on strategic inconsistencies, graphs that analyze key market concepts, lists ofstrategic strengths and weaknesses, a success potential rating in eleven areas and a writtendraft marketing plan.

Business Insight helps anticipate and manage change as it takes account of the fact that marketsuccess is a moving target affected by:

●

new competitorsnew technologyloss of key personnelacquisition of funding

market contractiongovernment interventionshifting demographics

It suggests new opportunities and exploits market volatility to identify ways of increasingmarket share, revenue and profits.

By asking the right questions andthen knowing how to apply the answers to your strategy, Business Insight provides a structuredenvironment for your strategic planning process - from assessment through analysis to

●



conclusion. It helps break down your strategic efforts into measurable goals. By doing this, youcan measure what needs to be addressed and how to achieve your goals. It’s very easy for bias,politics, and emotion to influence strategic decisions. Business Insight removes those bymeasuring independent factors.

Business Insight identifies strategies that could work best for you. As you delve deeper into itsanalysis report, you could see new opportunities for your business that, in the past, were hiddenand you'll be able to determine what should be done to strengthen your company or to make yourproduct or service more attractive to the buyers. In addition, you can assess the impact ofalternative approaches.

●

Business Insight considers the capabilities of your organization and your competitors, yourbusiness objectives, government influence and market climate. You immediately see all of thepositive and negative impacts on your business success. It offers 100's of analyses of yourstrategy which provide multiple insights into ways of strengthening your market position. Bybasing your strategy on proven business principles reviewed by experts, you increase yoursuccess potential.

●

Business Insight generates a comprehensive report to help you plan and justify your strategic decisions- see the sample report and demo below.


4. More About Business InsightThese items discuss the use of Michael Porter's Five Forces Model; the importance of getting insightsinto SWOTs; and the process of reviewing factors affecting strategy.

Michael Porter's Five Forces Model

The concepts that most influenced the development of Business Insight were published inCompetitive Strategy and Competitive Advantage by Michael Porter. In these works,Michael Porter described a concept that has become known as the "five forces model".This involves a relationship between competitors within an industry, potential competitors,suppliers, buyers and alternative solutions to the problem being addressed. We used thefive-forces model as a basic structure and built on it with concepts from the works of manyother authors. The result was a model with over 5,000 relational links.







While each industry involves all of these factors, the relational strengths vary. BusinessInsight uses input from the user to create a unique model of their industry. Then thousandsof "rules" are applied to evaluate hundreds of marketing and business concepts as theyrelate to the user's unique circumstances. This results in a set of analyses, including:

a success potential rating in eleven key areas❍

a list of strategic strengths and weaknesses❍

observations on strategic inconsistencies❍

a written critique of your strategy❍

a graphic analysis of key marketing concepts❍

a written draft of a marketing plan.❍

Getting Insights into SWOTs



A lot of lip service hasbeen given to a concept called SWOTs which stands for strengths, weaknesses,opportunities and threats. However, few enterprises have a formal method for evaluatingthese factors. There are many specific circumstances to consider, some of which are uniqueto your enterprise or industry. A few of these are:

Special/unique abilities●

New/proprietary technology that may benefit or threaten you●

Changes in the economy (positive or negative)●

Requirement for or loss of key personnel●

Access or lack of access to critical materials●

Changes in government policies or regulations●

Availability or lack of availability of capital●

Transportation or communication changes (cost or availability)●

Market entry of new competitors●

Social or environmental changes.●

These are only a few of hundreds of factors considered when you use Business Insight.The results of your analysis will be a better understanding of how to leverage yourstrengths to take advantage of perceived opportunities or to respond to threats and howto compensate for known weaknesses.

Factors Affecting Strategy

Business Insight evaluates all the factors that could influence the potential for generatingand maintaining profits over an extended period. The analysis evaluates your strengths andweaknesses and considers the consequences of your following each strategy. Examples offactors considered:



Character of your EnterpriseCustomer Service ExperienceCharacteristics of your Product or ServiceDevelopment OrganizationCharacter of the Target MarketThe Market PlaceDevelopment OrganizationPricing, Promotion and Distribution

Production ProcessCompetitionGeneral Management ExperienceFinancial Management ExperienceDevelopment Management ExperienceProduction Management ExperienceMarketing Management Experience

Each factor is assessed in detail. As an example, Business Insight asks numerousquestions regarding the Characteristics of Your Product or Service covering:

The market life cycleImportance to prospectMarket statusMarket focusEndorsementsRequirement for complementaryproducts/servicesDesign compatibility with productionlimitationsThe pricing strategyThe pricePrice levelType of functionTechnical contentTechnology uniquenessStandardizationDegree of innovationFeature uniqueness

OptionsPerformanceQualityScientific credibilityVisual aspectsEmotional appealSeasonalityUse of proprietary technologyPotential for copyingTechnology transfer via personnelTrademarksPatent(s)RoyaltiesLegal restrictionsInventory turnoverStorage costsBulkPerishability

Demonstration requirementBenefit of demonstration ApparentresultsEffect on buyer's market shareQuantifiable resultsTime required to benefitObvious return on investmentTrial availabilityComparison to competitionPerformancePotential savings for customerPrice comparisonSalvage potentialPayment termsUseful lifeTrial costsWrite-offs incurredSite preparation requirements

Installation requirementsSpecial modification costsTiming of introductionSupport device requirementsReeducation requirementTesting costsTechnical assistance requirementsLogistics modificationsMaintenance requirementsPackagingCostsPackaging protective qualitiesPromotional orientation ofpackagingHandling economyStorage efficiencyInfluence on the user

The analysis combines all the factors that could influence the potential for generating andmaintaining profits over an extended period. These include:

Potential for competitiveretaliation is based on the competitors resources, commitment to the industry, cashposition and predictability as well as the status of the market.

●

The enterprise's ability to construct entry barriers to competition such as the creationof high switching costs, gaining substantial benefit from economies of scale,exclusive access to or clogging of distribution channels and the ability to clearlydifferentiate your offering from the competition.

●



The intensity of competitive rivalry as measured by the size and number ofcompetitors, limitations on exiting the market, differentiation between offerings andthe rapidity of market growth.

●

The ability of the enterprise to limit suppliers bargaining power.●

The enterprise's ability tosustain its market position is determined by the potential for competitive imitation,resistance to inflation, ability to maintain high prices, the potential for productobsolescence and the 'learning curve' faced by the prospect.

●

The availability of substitute solutions to the prospect's need.●

The prospect's bargaining power as measured by the ease of switching to analternative, the cost to look at alternatives, the cost of the offering, the differentiationbetween your offering and the competition and the degree of the prospect's need.

●

Market potential for new products considering market growth, prospect's need foryour offering, the benefits of the offering, the number of barriers to immediate use,the credibility of the offering and the impact on the customer's daily operations.

●

The freedom of the enterprise to make critical business decisions without undueinfluence from distributors, suppliers, unions, investors and other outside influences.

●

For further details about the inner workings of Business Insight, view the sample report and onlinedemo below.








5. Online Demo & Sample Report

This Online Demo of Business Insight shows, in a few minutes,how it constructs a model of a business and applies its expert system's rules to build up a series ofproposals for changing, dropping or extending strategies.

Contents of DemoIndepth ExaminationHelp and GuidanceComprehensive InvestigationIndividual and Group AnswersReview of AnalysisPowerPoint PresentationDrill Down into AnalysesExplore ImprovementsCharts Illustrate FindingsSWOT Analysis

Detailed AssessmentsSetting Strategic GoalsReview InconsistenciesStrategic AnalysisCompare StrategiesAdd NotesPowerPoint PresentationReviewBuy Business Strategy Evaluator

This comprehensive sample report was generated by Business Insight. It identifies numerous criticalissues to be addressed so as to ensure that strategic decisions result in a successful strategy. It includes:

Charts that describe market position.●

Observations on inconsistencies in assumptions.●

Assertions or conclusions drawn by the expert system.●

Warnings of factors that could cause defeat.●

Lists of strengths and how to leverage them.●

Lists of weaknesses and how to compensate.●

A score of potential for success.●

























6. Frequently Asked QuestionsWhat other expert systems are available?

Quick Insight is ideal for assessing product and market proposals for new and smallerbusinesses. It is considerably less detailed than Business Insight but retains the essentialelements and facilities.

For expert guidance on developing a business plan, try the Plan Write Expert Edition.


Plan Write for Sales which contains facilities for writing a marketingplan as well as an expert systems to help assess and formulatemarketing strategies and sales tactics.

■

Plan Write for Hi-Tech Marketing is similar to Plan Write for Salesbut its expert system has been tailored for technology-based businesses.

■

Plan Write for Pricing contains an expert system to help determine theoptimal price for a product or service.

■

Insight for Sales Strategy includes an expert system that helpsbusinesses improve their sales conversion rates and revenues.

■


Business Insight is supplied with separate knowledge bases for manufacturing and servicebusinesses.




















7. User & Media ReviewsPhilip Kotler, Distinguished Professor of International Marketing, Northwestern University:

For years I've advocated that companies need to perform marketing audits to check theirstrategic fit to the changing market environment. Business Insight goes further. It not onlygives insight into the marketing side of the business, but into the company's total business.One can hardly fail to spot problems and opportunities in submitting a business situation tothe disciplined appraisal provided by Business Insight.

Mark McNeilly, Steve Gessner, System Strategy Department, IBM:

One question we skeptically asked ourselves was, will this software really give us anyinsights we hadn't thought of? (After all, the program is called Business Insight.) Theanswer is, it did!

John Sviokla, Assistant Professor, Harvard Graduate School of Business:

In my capacity here at Harvard I am exposed to many of the new tools for business andstrategic planning. Business Insight is the best I have seen.

President, US Lotteries:

The interview questions alone are worth the purchase price. We saved $2M by correctingour strategy before we invested.

Richard Wiser, VP Financial Planning, Mary Kay Cosmetics:

Using Business Insight is like having Michael Porter on call. It is like a refresher coursefor my MBA education.

Jim Glantz, BYOB, Inc.:

Your software is wonderful! It's like having the Wharton School of Business in mycomputer. It has already saved me much time in developing a business strategy for aproduct launch. I do not have the business savvy that some with extensive businesseducation and background may possess, yet, with your software giving proper guidance, Ihave gained a great sense of self-confidence about where I am taking my company andwhen I expect to hit certain milestones. Your product doesn't cost... it keeps paying! Yoursoftware is helping me achieve my dream. Thank you.








New York Times: Peter H. Lewis - Software to Help Introduce Products:

Business Insight is an expert system that purports to help businesses find the beststrategies for introducing a product, for clarifying a company's goals and for building betterunderstanding among members of a project team. Expert-system programs are also knownas knowledge bases, and they operate on the principle that business knowledge andexperience can be collected, codified and made accessible through a computer program.An executive asks the computer how to solve a problem, and the computer either comes upwith a suggestion or, in the process of sifting through variables, helps executives focus andcome up with their own solutions.

Many strategic planning programs are on the market, but Business Insight appears to bethe most comprehensive and ambitious. The program's developers assert that they havecaptured the theories and insights of 30 recognized management experts, includingMichael Porter, author of 'Competitive Strategy'. Business Insight sorts the user's answers,applies its rules and generates a variety of reports that can address specific product plans orthe overall health of a business.

"I've used it in a couple of situations, and we're using it now to evaluate a new product,"said Gary H. Knippelmier, business development manager for the Dynatel SystemsDivision of the 3M Corporation in Austin, Texas, who tested early versions of thesoftware. "The key thing is the broad perspective you get, more so than anything I've dealtwith. It's a way of trying to ferret out your inconsistencies."

The program begins by interviewing the user in question-and-answer form, asking literallyhundreds of questions that range from basic financial data to a description of the user'sbusiness and its market. A simple spreadsheet is incorporated into the program forgathering and refining financial data.

The fascinating thing about the process is that the questions go beyond mere facts andfigures. The user is asked subjective questions as well as objective ones -- how likely is itthat a competitor will retaliate, for example.

Should the product be introduced now, or should you wait for the market to develop?Should the product be priced low for market penetration, or high for maximum cashgeneration? What channels of distribution will be most effective? Should promotion be"push" or "pull"? How will new technologies and changing cultural trends affect thebusiness?

It takes several hours to answer the questions, if the user gives them the attention theydeserve. Even if the program did nothing else, the Q. and A. part is valuable in helping anexecutive identify a business's overall strengths and weaknesses. The questions ofteninclude helpful descriptions and summaries of business principles.

The point of the program, however, is to help a company pick the optimum conditions foroffering a new product. After it analyzes the situation, it generates a scorecard that rates the



chances of success and suggests areas that can be modified. It identifies a company'sstrengths and weaknesses, and points out inconsistencies in a product plan.

As a guide for planning products and devising a competitive strategy, Business Insight isan exhaustive checklist. It imposes a logical pattern on what is all too often a haphazardprocess.

Wall Street Journal: William M. Bulkeley - With new Planning Software, Entrepreneurs act likeMBAs:

Can a computer program make up for two years at Stanford Business School? Probablynot. But some business people say they have found wisdom in software. Softwaredevelopers have produced a number of programs designed to guide the uninitiated throughbusiness planning, negotiation, employee management and purchase valuation. Someprograms are little more than electronic form letters in which entrepreneurs fill in theblanks to bamboozle venture capitalists. Others are "expert systems" that give advice basedon the precepts of management gurus.

Nevertheless, some users say the programs have opened up new worlds. "I'm trying not tosound too effusive, but this software is really different. Any small-business person couldgain insights from it," says Randy Ziegenhorn, a New Boston, Ill., wholesale seed dealerwho uses a program called Business Insight. He credits the program for leading him tobetter marketing strategies. As a result, he says he sold more oat seeds in March than hehad in the previous two years.

Mr. Ziegenhorn says that neither his college degree in English literature nor his career as afarmer "lends itself to strategic business thinking." But when he answered the program'squestions about his business, the program asked whether he could tailor his marketingefforts to particular customers rather than treating them all the same. "I said, 'Yes, there's alot of difference'" among retailers, the store chains and the co-ops that buy oat seeds. Thenhe crafted the techniques that led to the sales gains.

All these programs attempt to give users insights by asking questions in a structured wayand forcing them to confront all the issues rather than ignoring difficulties."Information-gathering and stimulating your brain is how we envision our job," saysDaniel Bernstein, president of Beacon Expert Systems Inc., Brookline... The programsalmost always leave users with more knowledge than they started with...

The cost of such systems is small compared with the cost of a lawyer or consultant, userssay. Lewis C. Hoff, president of Bartizan Inc., a Yonkers, N.Y., maker of bank cardimprinters, uses Business Insight. He says a consultant would cost much more and "tie upa tremendous amount of time of you and your people." It's also quicker than getting anMBA degree. David Fein, vice president of Value Express, says, "It's like the differencebetween building a house from the ground up and redecorating it. You don't have tounderstand the theory to use it."

Planning Review: Mark McNeilly and Steve Gessner, IBM Corporation - An Expert System for



Strategic Analysis:

Business Insight is an expert system for strategic analysis that won the respect of themanagers who tested it for us. By combining both qualitative and quantitative strategicanalysis, it offers managers - especially those who lack a strategic planning background - auseful tool for considering and managing future outcomes.

Armed with Business Insight, a new expert system for strategic analysis, we analyzed theApplications Business System division of IBM, a multi-billion dollar unit. It took us tenhours to enter the data requested by the program and another hour to review our answers tomake certain we had addressed the questions appropriately. The program then prepared aforty page analysis...

What We Learned. We think Business Insight is a good first step toward using decisionsupport tools to integrate both the qualitative and quantitative data that managers must takeinto account when planning strategy. After collecting our answers to some 375 questionson a wide variety of topics - including organizational factors, human resources, productbenefits, packaging, market definition, sales processes and financing - the software wasable to synthesize an accurate and coherent strategic plan. Based on our experience withother strategic planning tools, we believe that Business Insight is breaking new ground ina wide-open market.

Business Insight presents you with a strategic analysis, observations about your business,key factors influencing the success of your business, your strengths and weaknesses, andpredictions for the success of different strategic options. The analysis it did for us coveredsuch topics as the business environment, the buyer, the product, the competition, theenterprise, development, manufacturing, marketing, service, suppliers, substitutes andmanagement. As an example of its responses, Business Insight suggested that we considerthe implications of our unit's targeted customer base. In addition to confirming severalvaluable perceptions we had gleaned during our previous analyses, it also provided newinsights in the areas of competitive rivalry, upside potential for earnings and advertising.

Another feature that took us a bit aback is that the answers it gives are quite frank. Forexample, if it thinks you should consider replacing one of your managers, it tells you soexplicitly. Thus, one side benefit of this expert system software is that it makesrecommendations without concern for office politics, its job security, or its nextpromotion....

One concern we had when we started was that, since Business Insight is an artificialintelligence tool, would it be a "black box" that wouldn't explain how it was coming upwith answers? We were pleasantly surprised to find that, for every comment orrecommendation it makes, it shows you a trail of its logic. For example, Business Insightwarned us to expect strong competitive rivalry. It showed us that the two primarycontributing factors to this potential rivalry were competitive commitment to the marketand competitive liquidity. The program then traced this conclusion back to the detailedcompetitor information we had supplied. This type of documentation is critical to the



credibility of the output.

Business Insight also tutors you on strategic thinking as it goes along. At the beginning ofeach set of questions, it briefly describes the strategic issues to consider when answering.For example, when collecting information about the characteristics of your buyers, itsuggests that you weigh buyer sensitivity to price, geographic location and dispersion,profitability, growth rate, and attitudes toward alternative solutions....

Business Insight is designed for product marketing managers, planning consultants,manager/owners of small to medium-sized enterprises and entrepreneurs. As professionalsresponsible for product strategy, we fit best into the first category... So how can people likeus use this tool to optimize the strategic planning process? ... to a certain extent, thelearning experience of working with the system is more important than its suggestedsolutions. After all, as General Eisenhower once said, "It's not the plan but the planningthat counts." In small companies, where the planning process consists of the owner'ssetting down and creating a strategy, the best use of Business Insight is as an expertteacher rather than an answering machine. The tutoring the program provides may be abargain for managers who aren't familiar with the concepts of strategic planning.

Success Magazine: Jenny McCune - Consultant-in-a-Box, A Program That Probes Your Businessfor Strengths and Weaknesses:

If you're a successful entrepreneur, chances are you learned about business through trialand error and applying your gut instincts. You know how painful - and costly - thatapproach can be. Have you ever wondered how things would have turned out if you'd hireda big-time consultant or had your business evaluated by the Harvard Business School?Business Insight is more than a collection of financial models and formulas; It's more likea sage mentor. The program judges numeric and non numeric factors, everything from thestrength of your management team to the stage of growth your market is in. Its analysis isrock solid, built from 40 business books that include the teachings of Michael Porter andother management experts. Whether you're starting a business, launching a new product, orrevamping your marketing, Business Insight will give you valuable input and help youimprove your strategy.

PC World: Bronwyn Fryer - Real Problems, Real Solutions:

Starting a new business - or expanding an old one - requires a lot of thought and research.Your options: Roll up your sleeves and do some of the research yourself, hire a marketingconsultant for a mere $150 an hour, or experiment with an emerging breed of softwaredesigned to help you make informed business decisions. Lew Hoff, president of BartizanCorporation, a multimillion- dollar manufacturing firm with 85 employees based inYonkers, New York, describes how "MBA-ware" helps steer his evolving business:

"While I was considering this new business, I read about a software packagecalled Business Insight. It's a database of 30 management experts' collectedknowledge. It asks hundreds of questions about finances, products,





distribution, and so forth. ... the program generates a report based on yourscores. It then rates your new venture's chance for success and identifies thestrengths and weaknesses of your business, suggests ways to modify yourplan. For $805, I got the same kind of information I would have received froma marketing consultant, without being charged about $1100 a day for fourday's work. And a consultant would have tied up a tremendous amount of mytime and my staff's time."


8. Buy & Use NowBuy and download Business Insight now via BRS's website as follows:


1.


2.


Business InsightFor evaluating andenhancing strategies inlarger businesses.

795.00

See also:

Quick Insight

For assessing newproduct and serviceideas for new/smallerbusinesses.

229.95



Includes: Plan WriteExpert BusinessPlanner, Plan Write forPricing, and Plan Writefor Marketing.Save US$ 100.85

489.00








http://www.brs-inc.com/?rp=rp_planware&url=business_strategy.asp









Buy Now


Entrepreneur Packageplus Business Insight.Save US$ 207.85

1,177.00


Manager Package plusQuick Insight, PlanWrite for Sales, andInsight for SalesStrategy.Save US$ 419.70

1,655.00






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Strategic Planning Software:Quick Insight - Business

Idea Assessor


Benefit from Expert Help2.

Key Features & Elements3.

Online Demo4.



Buy & Use Now7.

1. Overview

Fast Facts

Name: Quick Insight.

Function: Expert system toassess & enhance newbusiness ideas & plans.


Benefits: Assesses problems& market potential. Offersexpert help to improveprospects & planning.



See Also: Business Insight,Plan Write Expert BusinessPlanner, Plan Write for Sales& Plan Write for Hi-TechMarketing.

Buy + Use Now

Business Idea & Strategic Plan Software: Business Plan & Market Planning

http://www.planware.org/saleqi.htm (1 of 12) [30-05-2012 8:03:10 AM]






























Quick Insightis an expert system for assessing market opportunities or business ideas.Drawing on the principles of business strategy developed over the past20 years, it evaluates your new (or existing) product (or service), itscompetition, and the market to determine the potential for success. Onceyour product has been described, Quick Insight applies its specializedknowledge to the unique circumstances of the market and helps youmake a decision to progress, modify or drop it.

Quick Insight's assessments can be exported to Microsoft Word andPowerPoint as well as to the PDF format and the Internet. It requiresWindows 95/98/Me/NT/2000/XP/Vista/Win7.

Other relevant software solutions include:

Plan Write Expert Business Planner contains many elementsof Quick Insight's expert system and knowledge base aswell as the tools and help needed to prepare acomprehensive, professional business plan.

❍

Business Insight is a much more detailed and sophisticatedversion of Quick Insight for use by larger businesses.

❍

Plan Write for Sales contains facilities for writing amarketing plan as well as an expert system (based on QuickInsight) to help assess and formulate marketing strategiesand sales tactics.

❍





2. Benefit from Expert Help

Quick Insight is equivalent to anin-depth engagement with a consulting MBA specializing in marketing strategy and product planning. Itdraws on the expert of dozens of experts. Just a few hours with Quick Insight helps determine if yourbright business idea will really succeed in the marketplace. You get a clear perspective of its potentialbefore you invest more time and effort, and get suggestions for improvement.

Quick Insight incorporates a wealth of experience gained with the highly successful Business Insightused by Fortune 500 companies such as 3M, AT&T, Caterpillar, Equitable Life, General Electric, IBM,Pillsbury and many others. After many years of research, a set of expert system rules has beendeveloped that can quickly and accurately analyze the market potential for your products or service.These are all built into Quick Insight and can be accessed from your desk top.

The process of using Quick Plan provokes new and better ideas and possibilities for your product ideas.Having spent time with Quick Insight and studied its findings, you'll make a better decision whichsaves money or generates more revenue, or does both.



3. Key Features & Elements





http://www.planware.org/qi1/qi01.htm?pl=top







The key features and elements of Quick Insightinclude:

It starts with questions about your product ideas and your capability to achieve marketsuccess. These cover product, service, pricing, market, competition and environment.

❍

Quick Insight then delves into many issues to measure your firm's ability to achieve yourobjectives and projections. These include:

Your competitive advantage■

Your market niche■

Your dependencies■

Your pricing objectives■

Your ability to delivery■

❍

As part of this process, you rate your business against the competition in every areacritical to market success.

Quick Insight then analyzes your product❍



idea looking for strengths and weaknesses. Each evaluation is based upon intelligentsoftware trained to the level of an MBA in strategic planning and each analysis is uniquewith thousands of relationships factored. The feedback includes observations andassertions.

Each observation identifies a strength or weakness. It may point out aninconsistency in your assumptions. The basis for each observation is linked toyour input. You can trace back to your original answers and understand thecriteria behind the analysis. You can alter your input to experiment withalternative strategies.

■

Quick Insight makes assertions (draws conclusions) about your business.Each assertion identifies a weakness or a threat. Each assertion includes a listof the key factors considered in the analysis. You can click on any factor totrace to its origins. This process guides your planning to balance marketweaknesses with competitive strengths.

■

Quick Insight matches yourdescription of your product and company against an expert system knowledge base. Yourpotential for success is presented in a variety of proven business models including theBoston Consulting Group Matrix, GE Business Screen, Competitive Advantage and over30 more ...

❍

These help you to determine whether entering the marketplace has tremendous potential oris destined for failure. You can benefit from the exhaustive analysis either by reducingyour risk and/or altering your ideas to avoid pitfalls.

❍

You can print the entire assessment report of 50 pages, comprising text and charts, directlyfrom Quick Insight, or send it to Microsoft Word for further editing, or use it as the basisfor a Microsoft PowerPoint presentation.

❍








4. Online Demo

This Online Demo of Quick Insight shows, in a fewminutes, how the answers to about 60 questions are used to construct a market model and how theexpert system's rules are applied. These give insights into the factors with greatest impact on the idea'spotential so that its strengths can be leveraged and weaknesses compensated for.

Contents of DemoWelcomeDetailed InvestigationQuestions about CompetitionQuestions about CompetitorsQuestions about MarketsQuestions about CustomersEvaluation of PotentialDrill Down to RatingsReview ReasoningGet to Root CauseUnderstand ReasoningCustomers & CompetitorsOver 30 Charts

Over 30 ChartsGE Business ScreenCapability and PropensityPosition Evaluation GraphPricing StrategyObservations on StrategyObservations give AdviceTrace RatingsObservations and AdviceWritten AssessmentsDetailed GuidancePowerPoint PresentationBuy Business Idea Assessor


5. Frequently Asked QuestionsWhat other expert systems are available?

Business Insight is a powerful and sophisticated expert system for evaluating businessstrategies. It is much more detailed than Quick Insight and includes a facility to generate adetailed marketing plan linked to the Plan Write for Marketing.



































For expert guidance on developing a business plan, try the Plan Write Expert Edition.


Plan Write for Sales which contains facilities for writing amarketing plan as well as an expert systems to help assess andformulate marketing strategies and sales tactics.

■

Plan Write for Hi-Tech Marketing is similar to Plan Write forSales but its expert system has been tailored fortechnology-based businesses.

■

Plan Write for Pricing contains an expert system to helpdetermine the optimal price for a product or service.

■

Insight for Sales Strategy includes an expert system that helpsbusinesses improve their sales conversion rates and revenues.

■


Quick Insight is not industry specific and works equally as well whether you offer aproduct or service – or a combination of both.










6. User & Media ReviewsJordan Glogau, Sr. VP PowerNet:












I used Quick Insight on two projects the first day I received it. As I have come to expectfrom your company, the analysis was right on target!

Bill Bollinger, Project Manager, Multi-Option Systems:

Quick Insight is like having a $2000 a day business consultant on call.

Herman Hamm, Vice Chairman, SCORE Chapter 21:

This intelligent software is an invaluable tool in the hands of SBA, SBDC and SCOREcounselors and clients.

Jonathan Todd, President, SabreMark Inc.:

As a special marketing consulting firm hired by governments here and abroad, by businessand by other consultants seeking enhanced market share for themselves and their clients, Ineed the best marketing tools available, worldwide. Quick Insight spit out a report literallybetter than I would have received for $50,000 with the big management firms. I haverepeatedly found your programs to be highly accurate. I have even tested known cases withlimited information and have seen exceptionally targeted, valid results. SabreMark usesyour products as part of our service to nearly all clients now. I am thrilled with theavailability of an advocate who resides in my computer. What a great partner to have!

Paul McMannis, President, The Bell-Mason Group:

I look at hundreds of business plans in a year. Quick Insight will become a standard toolin my practice.

Jack Dwyer, Principal, J.D. and Associates:

The output is just terrific for internal and external presentations. Quick Insight reallyillustrates the direction clearly and concisely.

CEO, Market Scope, Inc.:

Quick Insight provides a quick yet intensive analysis of the market potential for each andevery product idea – whether it’s five, or 50. I use it even before expensive market researchis conducted, which saves us even more money.

Home Office Computing: Alan S. Kay - Instant Analysis:

Who wouldn't like to have an M.B.A. grade analysis of a new product's market potentialdelivered inexpensively within hours of a request? It can be yours with Quick Insight, apowerful marketing strategy analysis tool that works best for certain kinds of businesses.

Quick Insight doesn't demand much computer expertise. It installs easily and uses afriendly system of Cue Cards to guide you through developing a marketing analysis ofyour business. The product reflects its lineage as a down-market version of BusinessResource Software Inc.'s highly regarded Business Insight - a $805 package targeted at



Fortune 500 companies. Like it's bigger sibling, Quick Insight draws on the accumulatedwisdom of some 40 business and marketing experts to evaluate your answers to anextensive list of questions.

In fact, Quick Insight's greatest value may be in forcing you to answer all those questions- about the key players in your market, how their products or services compare with yours,your dependency on suppliers, pricing issues, marketing effectiveness, and a host of otherissues every business owner will recognize but too few have considered carefully. QuickInsight leaves you no choice but to think about them.

Based on your input, you'll be offered an extensive set of observations, a summary of yourmarket situation, and a numerical evaluation score reflecting your potential to enter andsatisfy your market, your competitive potential, and the likelihood that sales will generateprofits. If your rating on the 100-point scale is below 80, Quick Insight allows you toexamine those issues and problems you must address. The final report, which you can saveand print, can run to 50 pages. It can even include extensive graphs.

If you are planning a business empire, Quick Insight should be one of your firstacquisitions.

Computer Shopper: Kathy Yakal - Making Your Plans More Marketable:

If you're selling a product and suspect your marketing's gone awry, Quick Insight's expertanalysis can help. Many a fine product or service has never had a chance to shine becauseits creators lacked a successful marketing plan.

Quick Insight looks and works like an earlier software product from the same company:Business Insight. But Quick Insight costs much less. Also, it focuses on marketing forsmall and Fortune 1000 companies, while Business Insight aimed its sights at biggerbusinesses. After asking a series of detailed questions about your market, competition, andgoals, Quick Insight produces a 50-page analysis of your concept, illustrating it withcolorful charts and graphs. Unless you've created successful marketing plans on your ownbefore and don't need the expert advice, Quick Insight may well pay for itself many timesover.

Once you've completed the data-input section, Quick Insight takes over and supplies youwith a multilevel analysis of your company's ability to compete successfully in themarketplace you've described. First and simplest is the Evaluation. This is an overallpotential success rating of one to 100. Anything below 80 is considered risky. If you fall inthis danger zone, click on the Trace icon, and Quick Insight lets you revisit the screenswhose factors pulled the score down. You can actually call up this rating as you're enteringdata and watch how it changes as you answer questions.

Quick Insight's Observations come next. An outline highlights areas of concern that theprogram has isolated. Click on one such as: "You have a strong position in a slow market,"and the program supplies you with its rational for making that judgment, and offersstrategies for improving your chances there. If you click the Trace button, you'll be shown



the data-input areas that contributed to this conclusion.

More than 30 charts graphically illustrate Quick Insight's evaluation of your marketingplan. These are not all typical graphs such as you might find in a small-business computerapplication; they're tightly focused on various elements of your marketing plan. While youcan look at generic graphs such a Tendency to Buy and Consumer Decision-Making, youalso have choices like Capability and Propensity to Attack, and Offering/Market EvolutionPortfolio Matrix.

Finally, Quick Insight's Summary sums up in text form what it has told you in other waysthroughout the analysis process. Print out the more than 50-page analysis. This hard-copydocument comprises the extensive evaluation and strategy suggestions offered by QuickInsight for your individual situation, including the graphs created during your worksessions.

Quick Insight's creators suggest that the program is also a valuable tool for companies thatare already marketing products or services, to see if they might gain by altering somestrategies midstream. But in volatile economic times, it's especially helpful for people whocan't afford to take a financial risk and lose. So for less than a marketing consultant mightcharge for an hour's work, you can answer a series of insightful questions - many of whichyou may have never even considered - and get an expert evaluation of your venture'sprospects in the market.


7. Buy & Use NowBuy and download Quick Insight now via BRS's website as follows:


1.


2.


Quick Insight

For assessing newproduct and serviceideas for new/smallerbusinesses.

229.95

See also:










Plan Write ExpertBusiness Planner

Expert system basedon Plan WriteBusiness Planner pluselements of QuickInsight.

229.95

Plan Write for Sales

Expert system basedon Plan Write forMarketing pluselements of QuickInsight.

229.95

Plan Write for Hi-TechMarketing

Specialist expertsystem includingelements of Plan Writefor Marketing andQuick Insight.

299.95

Plan Write for Pricing

Expert system usingelements of Plan Writefor Marketing andQuick Insight.

229.95

Business InsightFor evaluating andenhancing strategies inlarger businesses.

795.00



Includes: Plan WriteExpert BusinessPlanner, Plan Write forPricing, and PlanWrite for Marketing.Save US$ 100.85

489.00


Entrepreneur Packageplus Business Insight.Save US$ 207.85

1,177.00








http://www.brs-inc.com/?rp=rp_planware&url=sales_plan.asp





http://www.brs-inc.com/?rp=rp_planware&url=hitech.asp




http://www.brs-inc.com/?rp=rp_planware&url=pricing_plan.asp

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CashflowForecasting

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Introduction

Benefits

Detailed Info

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Install & Run Notes

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Brochure: PDF

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Cashflow ForecastingSoftware

Channel Contents

Introduction: The Cashflow Plan range and uses, and howyou can benefit from using it.

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Benefits: Why Cashflow Plan is faster, easier and betterand its key advantages.

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Detailed Information: Descriptions of the six versions ofCashflow Plan, facilities and features, variables handledand help/ support provided.

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Download Trial & Free Versions: Links to download alltrial and free versions.

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Buy & Use Now: Ecommerce service for purchasing andimmediately downloading.

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Frequently Asked Questions: FAQs covering hundreds ofissues for new and existing users and for newcomers toExcel 2007-2010.

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Installation & Running Notes: Detailed guidance coveringinstallation, familiarization, exploration and use.

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Fast Facts

Name: Cashflow Plan (sixversions).

Function: MicrosoftExcel-based template for12-month income, cash flow& balance sheet projectionswith roll-forward facility.

Uses: Cash flow planning,budgeting, raising finance,cash management.

For: Managers, consultants,entrepreneurs & startups.

Benefits: Easy-to-use.Expandable. Saves time &effort. Improves cashplanning.


Prices (US$): Free, 39, 79,119, 159 or 199.

See Also: Exl-Plan formulti-year projections.


Contents Cashflow Plan, Cash Flow Plan, Cashflow Planner, Cash Flow Forecasts, Cash Flo...nning, Business Planner, Business Plan, Business Plan Software, Business Plan Template,

http://www.planware.org/cashflowforecastsoftware.htm (1 of 2) [30-05-2012 8:16:07 AM]



















































Support for Users: Details of support and help available tousers.

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Cashflow Plan Free: Free version for 6-monthprojections - details, download link and registration form.

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Cashflow Brochure: 4-page brochure in PDF format(470k) describing the Cashflow Plan range.

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See also:Financial Projection Software: Excel-based templates forcomprehensive, multi-year financial projections for businessplans, raising finance and strategic planning. Includes 150-pageWord-based template and guide for writing a plan.

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Strategic Planning

Software

Business Plan Guide




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Contents Cashflow Plan, Cash Flow Plan, Cashflow Planner, Cash Flow Forecasts, Cash Flo...nning, Business Planner, Business Plan, Business Plan Software, Business Plan Template,

http://www.planware.org/cashflowforecastsoftware.htm (2 of 2) [30-05-2012 8:16:07 AM]




























Strategicbusiness

Business

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