Can we afford to buy that new van? Can we afford not to buy that new van? What will happen to our cash flow if we win that new contract? What will happen to our cash flow (and bottom line) if we lose that customer? What would happen if we increased prices?
How will you work out the answers to these types of questions at the moment?
Many businesses don’t carry out any formal business planning but as with management information, all but the simplest of businesses would benefit hugely from this. We can help with this and as with all our business support services we can tailor these services to your specific needs:
- Start-ups and businesses requiring funding for a purchase or project are likely to need up to 3 years’ financial projections and a full narrative business plan
- Established businesses should maintain a narrative plan, including longer term goals and exit strategies, and update it regularly as circumstances change
- Annual budgets and projections should be prepared and monitored against actual performance (via the management accounts); these can incorporate ‘what-if’ scenarios to show the potential effects of key decisions
- Budgets can also be used to incentivise sales people and to empower key managers