Planning and budgeting is an essential process for anyone in business, it doesn’t have to be overcomplicated either. Yet many small to medium sized businesses fail to budget or plan appropriately.
We believe that a business plan is key to helping you think through your business in its totality, a strong accurate plan can keep you on track and accelerate your success. Without planning or a weak plan can lead to poor assumptions and is very capable of putting your business at risk.
Why small businesses don’t plan…
We find that many small businesses don’t invest the time in budgeting and planning as they’re too engrossed with the day to day running of things and rely on their instinct alone. Instinct can take you to a point whilst knowledge of market data and hands on management information shines the spotlight on the true drivers of the business.
Some businesses tend to over complicate their business model where budgeting becomes a huge event for the business once a year. This then becomes some mammoth endurance task, taking too long to produce, it soon becomes out of date and therefore unused.
Advantages of good business planning
It sets your intention, you are communicating your vision for all to see and support you.
It serves as a framework for the business providing benchmarks to ascertain if you’re reaching your goals.
You are considering all variables and assumptions so expectations are set on realistic analysis of the market.
The size and scope of the plan depends on your specific goals, the plan will highlight whether the business has the cash and resources to deliver growth.
It determines any costs and necessary financial investments if required to facilitate the delivery.
Everyone gets to understand the drivers of the business exposing trends and reasons as to why activities drive certain costs.
Your plan with some added detail can be used to raise finance or attract potential investors.
Easiest way to budget and plan
This really doesn’t need to be a big investment of your time and resources, start simple, don’t over complicate things, it needs to be useable. Using the plan as the framework for your business, you can review regularly. This is the real value of planning, reviewing what actually happened with what you expected and identifying the reasons for any differences, particularly within small businesses where unexpected expenses can have a harder impact. Continue to modify the plan, always working to the latest version.
Call in the experts and add real value
You can take some time to work with experts in this area, we have many years of experience working with different types of businesses and understand the pitfalls of business. We provide our clients with a variable planning and budgeting resource, so you always have easy to understand information at your fingertips to grow and prosper the business.
If this has been of interest and you would like more information on how we can help you, please contact our office on 01253 899989.
