APC can assist in the production of a business plan to accompany a budget and endeavour to encourage a system of inclusive management.

Many thanks again, Alan, for your valuable efforts on the figures for next year for use at a meeting of the directors tomorrow. This will be very helpful indeed.

All organisations are well advised to produce a business plan to accompany a budget projection.  This allows that organisation to formally document its status, aspirations, concerns and considerations.  The first page of the Business Plan should be devoted to the organisation’s Mission Statement and a summary of how that declaration is going to be achieved.  It then provides the organisation with a document which demonstrates its

  • origins
  • immediate past
  • strengths, weaknesses, opportunities, and threats (SWOT analysis)
  • current plans and current budget assumptions
  • its longer term strategic plans

In other words –

  • where it’s come from
  • where it is now
  • where it’s going to
  • how it’s going to get there
  • what it’s going to look like when its got there

This document is a valuable companion to the budget. 

  • It gives the background and justifications to the figures projected, confirming to the readers that the organisation knows what it’s about. 
  • It acts as a plan of action for the organisation and a blueprint for the future. 
  • It is a reference point from where assumptions can be checked against actual results
  • It allows management discussions to be based on facts rather than suppositions.

In order to provide this, the body of the business plan should cover several areas in detail.  These areas will include - 

  • The company, its origins, its growth, and its facilities.
  • The products and/or services it sells, including technical data.
  • The management team guiding the company.
  • The staffing of the organisation and the increases required as turnover grows.
  • Market and competitor information, outlining what part of the market the company is targeting, key competitors and what differentiates the company from its competitors.
  • Detail any focus on niche markets where the profit % may be greater.
  • Selling and Marketing strategies, including a pricing policy, a costed advertising and marketing plan, and details of how the product / service provided will be delivered to the company’s customers.
  • The level of growth the company is envisaging and how that will be achieved.
  • The financial controls and reporting systems which will monitor performances in financial terms.
  • The financial funding requirements of the plan and where those funds are to be sourced from – for example – directors’ loans, bank loans, finance agreements, trade creditors.
  • The minimum level of sales required to maintain profitability and the plans of action in place should sales start to fall towards that level.

In preparing the above information it is essential that, whilst the message running through plan should be one of optimism, this optimism should be tinged with a degree of realism. 

APC can assist in the production of a business plan to accompany an organisation’s budget utilising a model built up over many years.  This model can be bespoken to fit the needs of any organisation.  APC endeavours to promote a system of inclusive management where all managers are encouraged to buy into the plan and actively support its aims and aspirations.

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