Business Plans & Forecasting

It is essential to have a realistic, ongoing business plan whether you are starting up a business or planning the future of an established business.

A business plan is a written document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts. It has many functions, from securing external funding to identifying milestones and measuring success within your business.
There are significant benefits to creating and managing a realistic business plan, these include:

  • To help you spot potential pitfalls before they happen
  • structure the financial side of your business efficiently
  • focus your efforts on developing your business
  • work as a measure of your success

Many people only think of a business plan as a document used to secure external funding. This aspect is important because potential investors, including banks, may invest in your business, work with you or lend you money as a result of the strength of your plan.

However it is important that you remember your business plan will help you monitor your performance and stay on track and will therefore need updating and changing as your business grows. Whether you intend to use your plan internally, or as a document for external people, you need to take an objective and honest look at your business.

When preparing a business plan for an ongoing business it is advisable to link the forecasts into the management accounting process and review appropriate milestones and financial variances from forecasts on a regular basis. This procedure enables you to identify areas that need corrective action and assist in the updating of the overall business plan.

At Garratt’s’ we can advise and assist you in the preparation of your business plan, financial forecasts, management accounts and even attend your management meetings to provide an independent overview of the business to assist you in its future development.