The document outlines a business development plan for John Smith Accountants, an accounting firm aiming to grow its turnover from $250k to $1m within five years with an injection of $30k. It includes comprehensive sections on market analysis, marketing strategies, financial forecasts, customer acquisition, and a SWOT analysis highlighting strengths, weaknesses, opportunities, and threats. The plan emphasizes the necessity of targeted promotional efforts and efficient service delivery to achieve its strategic objectives.

1. Business Development Plan
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2. Presentation of Business Plan
• The Business Development Plan is a 40
paged full document filled with a rigorous
amount of financial data
• This is an example of an accounting firm
known as John Smith Accountants
• Business Plan 2010
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3. Table of Contents
• Executive summary
• Business background
• Business model
• Market analysis
• Marketing plan
• Business analysis
• Business financials
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4. Executive Summary
• Business statement
• Strategic objective
• Ownership and target funds
• Customer forecast
• Capacity forecast
• Financial forecast
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5. Business Statement
• John Smith Accountants is an
accountancy practice founded in 2006
by partner John Smith
• John Smith Accountants Supplies
general accountancy services to sole
traders and small and medium sized
businesses
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6. Strategic Objective
• The Strategic Objective of John Smith
Accountants is to grow from its
current turnover of $250k to $1m
and exceed a net profit of 25%,
within 5 years.
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7. Ownership and Target Funds
• Current ownership resides with the
sole Partner John Smith.
• John Smith Accountants has
calculated that it requires an injection
of $30k to fund:
The addition of a Practice Manager and
an Administrator
Effective marketing and promotions
The business cash flow requirement
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8. Customer Summary
• This table forecasts the number of
clients resulting from our client
acquisition and retention strategies:
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9. Capacity Summary
• The table below forecasts the number
of employees required to service our
growing customer numbers. It also
forecasts sales and profit per
employee.
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10. Financial Summary
• This table forecasts the growth in
turnover, profits and business value:
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11. Business Background
• John Smith Accountants was founded
by John Smith in May 2006.
• John Smith Accountants will complete
its 2nd year of business at the end of
March 2008 with a projected turnover
of $250k.
• The Senior Partner John Smith and 3
supporting Accountants have over 35
years of experience in the field.
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12. Personal History
• John Smith graduated from the
University of Texas in 1989 and
worked for one of the major
accounting practices before setting
up John Smith Accountants in 2006.
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13. Business Model
• The business model links Customers,
Capacity and Cash:
Customers to Capacity
Customers to cash ‘in’
Customers to cash ‘out’
Capacity to cash ‘out’
• These links are shown in the following
tables and form the basis for the
forecasts in this plan.
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14. Customers to Capacity
Time required by each resource type to
deliver each service:
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15. Capacity
The number of customer-facing hours
available each month is modeled as
shown below:
The figures exclude holidays and time for
administration, training, coffee breaks and
sick days. We’ve used a conservative level
of 65% of normal monthly hours after 4
weeks vacation.
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16. Customers to Cash-In
Mix of services by client type - what
they buy and how frequently they
buy:
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17. Quantity Buying Profile
Sole Proprietors and Small Business
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18. Quantity Buying Profiles
Medium size companies
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19. Services Summary
Summary of average quantities,
prices, discounts, commissions and
gross margin:
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20. Profiles
The Sales Lag models the time from
promotion to invoice:
The Customer Payment Profile models the
lag between invoice and payment and any
bad debt:
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21. Client Retention
The top row of the table below shows the
impact of the retention profile after each
year up to 5 years:
The retention works in conjunction with the
repeat buying profile shown against each
product or service in the Client Product
Matrix.
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22. Customers to Cash-Out
Here’s an estimate of the cost of
acquiring new customers and the
budget required:
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23. Capacity to Cash-Out
Scaled resources and support
numbers:
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24. Salaries
Support and scaled resource types
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25. Resource Costs
When each new resource type is
added, the following costs have also
been included:
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26. Volumes by Product
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27. Sales by Product
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28. Market Analysis
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29. Marketing Plan
The table below shows each
promotional option, launch dates,
targets and costs:
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30. Cost Per Response
The following table shows the
expected response rates from each
promotion:
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31. Annual Responses
The table below shows the number of
responses expected from each
promotion in each of the 5 years of
the plan:
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32. Cost of Acquisition
Summary of total responses, the total
costs and the average cost of
acquisition:
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33. Customer Summary Year 1
This table shows customer acquisition
and retention and the impact on
revenues:
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34. Customer Summary
This table shows customer acquisition
and retention and the impact on
revenues over the 5 years of this
plan:
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35. Sensitivity Analysis
• John Smith Accountants aims to grow to a
turnover of $1m in 5 years. A cash
injection of $30k is required.
• The risk to the funds requested by this
plan is considered to be low because:
– The funds are only required in the early stages
for the development of the infrastructure
– The business plan indicates steady growth
using various promotions to spread the risk
– The gross profit margin is high
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36. Areas of Sensitivity
• The conversion rate prospect-to-client is
lower than expected. We’ve used the
rate currently being achieved of 33%.
• The conversion rate promotional target-
to-prospect is lower than expected. The
cashflow would be sufficient to service
the debt even on the lowest predictions.
• The company’s promotional efforts
attract a higher proportion of low-value
clients. Our promotions will be well-
targeted.
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37. SWOT - Internal Strengths
• The owner and supporting
accountants have been running a
profitable business for 2 years with a
proven track record
• The experience of the employees in
this industry is strong
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38. SWOT - Internal Weaknesses
• Insufficient capitalization to ensure
John Smith Accountants takes
advantage of its potential
• Unknown brand name. John Smith
Accountants is not as well established
as its main competitors
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39. SWOT - External Opportunities
• Actively Marketing the company and
its services in accordance with
strategic objectives
• An opportunity to provide a superior
service without an increase in fees
through improved efficiency
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40. SWOT - External Threats
• Competition from countries with
qualified but cheaper labour, e.g.
India
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41. Profit and Loss
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42. Cash Flow
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43. Next Steps - Contact FPS
 Success comes to those who Plan for It!
 Business Development Planning is dynamic and
energizing and that’s exactly what we do with our
highly calibrated system.
 Let us help you Develop a Business Plan to:
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get there, the finance required and what it could be
worth.
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 Maximize your Business Valuation according to your
ambition and timeline
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