Explanation of Business Planning. Paul Munnery. January 2014

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All successful business people plan their business. Most average business people don’t.

If you are not planning your business ahead then frankly, you’re probably winging it

There is nothing wrong with this approach to running your business; after all, it’s your business. But I bet the business is not capturing as much of the market potential that’s available out there, or generating anything like the amount of profit it could.

And another thing that I’ve learned over twenty years of running my own companies and as a business coach & consultant - a well-planned business is far easier to run than one that isn’t planned. Much easier.

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Explanation of Business Planning. Paul Munnery. January 2014

  1. 1. Business'Planning' A"lack"of"confidence"or"ability"can"be"key"reasons"why"some" business"owners"don’t"plan."" "" For"others,"it’s"a"lack"of"<me"that"prevents"them"from"planning" their"business."So"apart"from"the"odd"tweak"here"and"there,"the" business"ploughs"on"in"roughly"the"same"direc<on"and"in"much" the"same"way"as"before." "" Given"the"improving"economy"and"possibility"of"beAer"<mes" ahead,"in"2014"ambi<ous"business"owners"are"planning"how" their"business"might"operate"in"future."
  2. 2. Business'Planning' Paul'Munnery'
  3. 3. Businesses' What’s"the"difference"between"" successful"and"average"businesses?" ' Successful' vs.' Average' " "
  4. 4. The"opportunity" •  An"improving"economy" •  Maximise"profits" •  Grow"the"business" –  Exis<ng"and"new"markets"
  5. 5. Family"
  6. 6. It’s"a"fact" " All'successful'business'owners'plan'their'business' " " " " " " " Most'average'businesses'owners,'don’t!" "
  7. 7. Why"Plan?" "" •  Give"the"business"owners"and"managers"an"objec<ve," professional"perspec<ve"on"the"business" •  S<mulate"interest"from"poten<al"investors" •  Signal"to"investors"that"the"business"owners"will"adopt" appropriate"standards" •  Provide"informa<on"for"due"diligence" •  Document"key"legal"facts"about"the"business" •  Provide"a"roadmap"for"value"crea<on" •  Provide"a"basis"for"monitoring"and"control"
  8. 8. Effec<ve"Planning" Two'types'of"Business"Plan" " •  Different" –  What"are"they?" –  How"to"use"them?" –  Which"to"use"and"when?"
  9. 9. Types"of"Plan" 1."Where"the"business"needs"to"convey"informa<on" •  External'Business'Plan' "" 2."When"the"business"needs"to"understand"where"it’s"heading" •  Internal'Business'Plan' "
  10. 10. Why"two"plans?" External'Business'Plan' •  Formal"and"complete" •  Must"speak"their"language"–"bank,"investor,"accountant," government"…" •  There"to"do"a"specific"job" Internal'Business'Plan' •  •  •  •  •  Must"speak"your"language" A"modeling"tool"" Dynamic."Changing" Establishes"the"key"tasks,"KPI’s"and"SO’s"to"be"worked"on" A"tool"for"measuring"performance"
  11. 11. The"Internal"Business"Plan" A"dynamic"plan" Must"be"reviewed"frequently."LiAle"and"oZen" Most"elements"of"the"plan"will"work"out."The"rest"won’t" Any"part"of"the"plan"that"is"underperforming"or"projected"to" underperform"gets"aAen<on" •  Take"early"and"decisive"ac<on"to"put"problem"elements"of" your"plan"into"intensive"care" •  This"plan"is"about"performance" •  •  •  • 
  12. 12. Why"don’t"we"plan?" Usually,"for"one"of"four"reasons" " 1.  2.  3.  4.  Doing"well"enough."Happy"as"we"are." Salarysubs<tute"business."Happy"as"we"are." Never"enough"<me." Don’t"know"how."
  13. 13. The"Internal"Business"Plan" •  Create"your"own"plan."Use"your"language."It’s"personal." •  Break"the"plan"down"to"the"lowest"level"of"income" genera<ng"ac<vity."Lots"of"detail." •  It’s"all"about"performance." •  Review"all"ac<vity"frequently"–"ideally"every"68"weeks." •  Promote"ac<vi<es"that"are"overperforming." •  Put"the"ac<vi<es"that"are"failing"into"Intensive"Care."" •  Take"early"&"firm"ac<on"with"any"part"of"the"plan"not" delivering."
  14. 14. Remember"…" " ' All'successful'business'owners'plan'their'business' " Most'average'businesses'owners,'don’t!" "
  15. 15. Business'Planning' Paul'Munnery' ' paul.munnery@stewartnash.co.uk' ' 07850'900004' ' www.stewartnash.co.uk'

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