Business Development Plans
Developing business plans can be a challenging experience for many businesses. They are a necessity if you are planning to access funding for your business venture and it is important to give yourself every opportunity for success with a convincing case.
There are several routes to creating good business plans. Firstly there are several software packages that can support the process, They ask you the important questions that you may not have thought about.
The research element of the plan and the figures are often the most challenging aspect of developing a business plan. It can take months if you haven’t got a clear view of your market, customers, suppliers, your finance and your marketing plan. It is basically a plan to try to convince professional groups that you know what you are doing with your business like banks, investors, partners etc.
Business Planning Equals Success
Current statistics state that 80% of start-ups fail within 24 months. A 20% success rate is very low and it all starts with your business plan. As a business owner, it is very important to be clear before you discuss your business with professional bodies. Examples of questions to review with your accountant include:
– What your current average monthly projects sales
– What your current average monthly labour costs
– What your current average monthly fixed expenses are
– What your current average monthly variable expenses are
– What your average number of transactions per customer per month are
– What your average dollar sale per transaction is
– What your average monthly profit is
– What your average monthly profit margin is
– And what % capacity your business is at right now
– How much are you going to pay yourself, and when can you start
– How far in the future do you want to plan ahead?
At Finance Equation, we have over 20 years’ experience in helping businesses from start up to medium-sised companies. We support the data gathering process, work on the financials and ensure that your business is set up to succeed.
Contact Us to get started on setting up a business plan.