Workshop slides for the business planning module http://bit.ly/1kSRbSp

1. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
Workshop Programme
Business Planning

2. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
Agenda
• Feedback – actions you have taken
• Business surgery
• Workshop
– Business planning
• Implementation in your business

3. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
Course Overview and Positioning
MARKETING OPERATIONSSALES MONEY
SYSTEMISATION AND RESILIENCE
BUSINESS PLANNING
VALUE
BUSINESS DIRECTION
PEOPLE

4. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
Learning Objectives
• Workshop objectives
– To understand the benefits of having a business
plan
– To understand the components of a business plan
– To learn how to develop a business plan

5. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
Why have a Business Plan?
• It’s a roadmap for your business
• It explains to potential lenders and investors
how they will make a return

6. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
Why have a Business Plan?
• It’s a roadmap for your business
– Checks you are actually going to make some money -
shows income v costs and cash flow
– Identifies and validates assumptions
– Identifies and mitigates risks
– Identifies the required resources
– Turns your Vision, Mission and Strategic Objectives
into action
– Communicates your aims and vision to your staff
– Keeps you on track – forms the basis of reviews

7. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
Why have a Business Plan?
• It explains to potential lenders and investors
how they will make a return
– The bank
– Friends & family
– Business angels and venture funds
– You!

8. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
What should be in a Business Plan?
• It tells a story
– Where you are going
– How you are going to get there
– Why you are bothering

9. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
What should be in a Business Plan?
• Direction (aka strategy or purpose)
• Market analysis
• Sales forecasts
• Operational assets & costs, productivity,
utilisation
• People – structure, numbers, development
• Money – budget and best/worst case
• Key performance indicators & targets
• For external use: Management team & required
funds

10. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
How do you create a Business Plan?
Income
Costs
Cash
flow
Strategy
Marketing
Sales
Operations
People
Suppliers
Investment Risks
Assump-
tions

11. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
How do you create a Business Plan?
• The framework is financial...
– Sales income
• Volume & price
– Market analysis, positioning, proposition, price, SWOT
– Sales process & forecast
– Direct costs
• Materials & labour
– Productivity, utilisation, service levels, supplier management
– Indirect costs
• Marketing, sales, salaries, rent
– Profit
– Cash flow forecast
• Terms and conditions, supplier management, credit control, working
capital
• Sensitivity analysis

12. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
How do you create a Business Plan?
• Use the financial framework to develop the
business plan “story”
– Variance analysis
• Compare the figures with the previous year
• Explain the differences (or similarities) by completing the
strategy, marketing, sales, people and operations sections
• Identify KPIs and targets to match the financial targets
– Sensitivity analysis
• Identify the factors that affect the net profit
• What happens if all these factors go wrong (worst case) or go
better (best case)? What does this tell you about your base
case?

13. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
How do you create a Business Plan?
• SWOT
– Strengths and weaknesses
• Internal - relate to your business, how capable it is and what
resources it has
– Opportunities and threats
• External – relate to possible changes in the business
environment & market
• Often split into Political, Economic, Social, Technological,
Legal, Environmental
• The point is what you do about the things it
identifies
– Actions in the Business Plan

14. Copyright ©Nick Bettes Consulting www.nickbettes.co.uk
Implementation in Your Business
• Suggestions
– Prepare a budget for your next financial year
– Incorporate this into your monthly management
reviews