Although our clients most often seek our assistance writing formal business plans when they are looking for financing, we cannot emphasize enough the benefits derived from engaging in the business planning process on a regular basis.
Business planning helps you focus your goals and stay on track. It is difficult to stay on track when your daily routines are in a constant state of flux. Periodically revisiting and revising your strategy in the business planning process can keep you are your team focused on the things that matter most to your organization’s success.
When there is clarity about the goals and objectives of an organization it can move in one cohesive unit. Managers do a better job at delegating and team members recognize their interdependencies.
A business plan encompasses three primary components; a marketing plan, an operations plan and a financial plan. Typically the plan is developed in the order, but it is an iterative process. The marketing plan clarifies what you do, who you are, who you service and how you create value for them. The operations plan describes how the entrepreneur will utilize the physical and human assets of the company to achieve the marketing objective. Finally, the financial plan lays out the details of what capital needs to be committed to each area of the operational plan, what results can be expected from the marketing efforts and what return a potential creditor or investor can expect from the investment.
The business planning process is more than just a one time exercise. Too often we have seen start-up companies draft a business plan, present it to investors and then throw it in a drawer. Within a matter of months almost nothing they had envisioned in the original plan as come to fruition, which it perfectly normal, but then they neglect to revisit and revise the original plan. As the old adage says, failing to plan is planning to fail.
We have helped draft dozens of business plans in a wide range of industries. At times we take a consultative approach, in other cases, we have taken the lead in crafting the plan. We can also help management stay on track by forcing them to revisit the plan at regular intervals as their financial results are released. Numbers don’t lie and if you are not achieving the financial results it pays to identify the qualitative and quantitative reasons why.
Whether you are a seasoned business executive or opening your first business we have the right experience to help you keep your business planning process on track.
Call us today to find out how Podraza CPA can help with your business planning process.
Whether you are a seasoned business executive or opening your first business Podraza CPA has the right experience to help you keep your business planning process on track.