Business
Plans
Business
plans are
the granddaddy of all budgets and should include:
- Forecasts of sales and expenses for five years.
- Employee headcount and organization chart by
year.
In
addition, there should also be several sections that speak to how the
company should be run:
The
financial information should be further broken down to get a firm plan
of how goals are to be reached:
- Assumptions made in creation of plan.
- Revenue and margin by platform, product, or
service.
- Financial performance bridge from one year to
the next.
- Employee headcount bridge from one year to the
next.
- Cost reduction initiatives.
Who uses the plan?
- Investors
in the business rely on the plan.
- Top Managers make decisions based on the plan.
- Department Managers run their areas based on it.
- Accounting uses it to make budgets and
forecasts.
- All future activity is compared to the plan.
This is
the dream, the vision applied to financial
numbers. The
importance and absolute
necessity of it should not be underestimated.
A company without a plan
is like a car
without a steering wheel, there will be no deliberate direction and it
will
wind up wherever the car goes.
Create successful
business plans
Other
Resources:
Other
business reports:
Budget
Forecast
Flash Report
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