CS28310CS28310Business PlanningBusiness Planning

Why plan?Why plan?• To see where you’re goingTo see where you’re going• How to get thereHow to get there• Discuss with management teamDiscuss with management team

Sales ForecastingSales Forecasting• A black art at firstA black art at first• Comes with experience and historyComes with experience and history• State of the economyState of the economy• Technology challengesTechnology challenges

HR PlanningHR Planning• If we expand where is the labour If we expand where is the labour

force.force.• Could be shortage of programmers, Could be shortage of programmers,

computer engineers etccomputer engineers etc• Re-skill existing personnelRe-skill existing personnel

Financial PlansFinancial Plans• Profit and Loss ForecastProfit and Loss Forecast• Cashflow ForecastCashflow Forecast• Balance sheetBalance sheet

Profit/Loss ForecastProfit/Loss Forecast• Done MonthlyDone Monthly• Tries to show predicted profit/lossTries to show predicted profit/loss• Consists:Consists:

– Income (Sales, Support, Interest)Income (Sales, Support, Interest)– Outgoings (Suppliers, Staff, Overheads, Outgoings (Suppliers, Staff, Overheads,

Interest on loans, National Insurance, Interest on loans, National Insurance, Pensions)Pensions)

CashflowCashflow

• Cash coming inCash coming in– LoansLoans– MortgageMortgage– SharesShares– Payment for Payment for

goods/services goods/services supplied by yousupplied by you

– VATVAT

• Cash going outCash going out– SuppliersSuppliers– VATVAT– OverheadsOverheads– SalariesSalaries– Capital ExpenditureCapital Expenditure

• ComputersComputers• Furnishing and Furnishing and

fittingsfittings

Balance SheetBalance Sheet• Snapshot of what the business is worthSnapshot of what the business is worth• Money owed to youMoney owed to you

– Accounts receivableAccounts receivable• Money you could getMoney you could get

– SellSell• CarsCars• StockStock• EquipmentEquipment• Name/Patents/WebsiteName/Patents/Website

• Money you oweMoney you owe– Accounts PayableAccounts Payable– ShareholdersShareholders– VATVAT