Aspiring companies need a strong business plan

The BUSINESS PLAN is the first document that a potential investor reads as part of the company’s capital raising process.

This means that the business plan has to contain all of the key information that enables the reader to understand the Directors’ vision for the company.

There needs to be an explanation of the linkages between the individual components of the business.

Market research should be an analysis undertaken by an experienced marketing consultant who will be acceptable to the investors that the company is targeting.

Strategic Planning: confirmation that operational documents are available to all team members highlighting goalsetting and the corporate strategies.

Predictive Accounting Reports: budgets for each business activity, KPIs, key drivers sub-accounts, cash flow forecasts, projected balance sheets.

The Predictive Accounting Reports are the “financial interpretation” of the business plan, which contains the following:

• Details of the “rhythm of meetings” for the company.

• Talent attraction and retention strategies including team training strategies.

• R&D planning and the linkage with manufacturing.

The business plan should indicate that product development flows from market research and is then subjected to research and development activities.

The business plan should outline the profitability analysis strategies that have been implemented including:

• weekly performance report
• detailed monthly financial accounts including KPI and metrics analysis
• comparison to budget
• analysis of cash flow forecast
• analysis of key indicators

Supply chain monitoring: what is the company’s policy? Are key products being sourced from more than one supplier?

Business review meetings: does the business plan commit the company’s leadership team to a detailed monthly review of financial performance with a report than being submitted to the Board of Directors?

Business plans are a vital document for all companies.

To find out how Towers Business Development can assist your company with business planning, call 1800 232 088 or email .