Business Planning

A business plan is an analysis of the fundamental structure of the business.

The planning process helps to identify what the business owns including the tangible bricks and mortar and beyond into the intangible assets of the business.

The planning process then identifies what the owners want from their investment and how their business can achieve the owners goals and objectives.

The business plans scope can vary from a short term one to three years for a specific one off assignment to the expected life span of a business. Generally business plans are developed based on a five year span, with annual reviews and updates.

Why Plan?

Through the planning process, a business plan can help to identify a businesses current strengths, weaknesses, opportunities and threats. Identifying these fundamental elements will give the business a competitive advantage and allow for easier management as the business has a set route to follow.

Who plans and when?

A business plan can be developed for any size business and at any stage. Developing a business plan when first establishing a business can help to develop a structure which will meet the businesses future requirements. Early in a business life there are generally financing requirements, a business plan will help owners show financial institutions the potential a business has beyond the current bank balance and last years financial statements.

As a business expands the owners can face liquidity problems in terms of having all their cash tied up in fixed asset, debtors and stock as well as facing expansion costs. A business plan will analyse the cost structure of the firm and identify the threats facing the expanding business as well as the opportunities expansion will create. The best time for an expanding business to develop a business plan is before any major investment in capital items.

In medium sized firms there can be several owners with different objectives which can often conflict. A business plan will help identify the individual owners objectives and create an overall objective for the business eliminating conflict within the ownership structure.

In large organisations owners can be separated from the business. When there is a separation between ownership and management a business plan can help managers understand the owners objectives therefore allowing the business to be developed by managers to meet the owners goals and objectives.

Gilmore Brown Ltd offers an indepth business planning service tailored to the specific needs of individual businesses.