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Business Planning, Budgets & Forecasts

Business Plan/Budgets and Forecasts
“If you don’t know where you are going, any road will take you there”

The importance of a sound, robust and comprehensive business plan cannot be over emphasised. Whilst you feel you may have a great idea for a business, you need to test this ‘feeling’ with a business plan. A business plan will help you to assess the financial viability of your business. It needs to be comprehensive and cover all areas of your new business. Numerous studies show that business planning greatly improves the success rate of any business venture. Amel (UK) Limited have years of experience of developing business plans. We will construct your business plan and investigate all aspects of your proposed business and provide guidance on potential problem areas identified as part of the planning process. We will ‘test’ your assumptions for the plan and demonstrate the financial impact of variances from the core assumptions. Small changes in assumptions can have a significant impact on the financial viability of the plan.

Most investors will want to see a business plan before they consider funding your business. It should be no different if you are funding your business! You want to make sure that the savings you are about to sink into your new business venture represent a sound investment. It will demonstrate how much finance the business will require.

Business planning is similarly worthwhile for any business undergoing significant change, for example developing new products, new markets, expansion plans, capital investment projects or even relocation into new premises.

Whilst business plans are a great tool to help assess the financial viability of a business and for raising business finance, they have another very important function. A business plan is a blue print for your business, a road map, a strategy document. Within it are all of the key parameters which impact on your business. Business plans play a key role in allocating resources throughout your business. They set targets not only for the business as whole but for the key areas within the business. A business plan will help to focus on the key targets and to assist in managing business priorities.

A good plan needs to be reviewed and updated over the life of a business. You can increase your chances of business success by regularly comparing actual business performance against the business plan. This will highlight areas within the business that are under performing so that these can be addressed. We have already identified how small changes in the assumptions in the plan can have significant impacts in the financial viability of the business. This is no different when the business is up and running but the outcome if not addressed can be far more significant!

If you regularly review the actual business performance against the plan you are more likely to meet your business objectives. Reviewing the performance with other key members of staff will also show direction and will assist in improving commitment towards achieving the business objectives.

 

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