Business Planning is essential to any company. This is one of the mandatory competencies for the APC. Many Property courses will cover business briefly. Strategy planning may be part of your day to day role.
Why have a plan?
A Business Plan is a written document that describes your core objectives and what you plan to do to ensure you achieve them over a set period of time. As well as helping you, it will help others understand how you plan to generate money and grow sustainably. A Business Plan often includes information about your goals, strategies, marketing and sales plans and financial forecasts.
It is important that it is reviewed and adapted on an ongoing basis, reviewing the company’s past performance and predict where it will be in the future. There are various events such as political – Brexit or Environmental – Climate Change that can cause a knock-on effect. Planning ahead for different scenarios can mitigate these risks.
Business Strategy
What are the aims of the business? Smartdraw.com have a useful article on Strategy
Analysis – Measuring Business Performance
How is performance measured? There are various different methods for measuring performance and no particular right or wrong way to do it.
SWOT
Strengths – Highlight the areas of your business that make it successful
Weaknesses – What are the areas you are struggling in?
Opportunities – How can you improve on the weaknesses of the business?
Threats – Weaknesses and Strength usually highlight the threats that can occur.
KPI’s
Key Performance Indicators are used in various companies. This is where measurable targets are set to track the performance across different areas of the business.
KPIs are typically included in a reporting scorecard or dashboard that enables top management, the board or other stakeholders to focus on the metrics deemed most critical to the success of an organisation.
PESTLE
This is a strategic tool used by organizations to discover, evaluate, organise, and track macro-economic factors which can impact now and in the future
- Political
- Economic
- Social
- Technological
- Legal
- Environmental
Business Finance
Cashflow
The most common finance forecast used in business plans is a Cash flow model. Cashflow modeling is the practice of planning and forecasting the sources and uses of cash.
Balance Sheet
A balance sheet is a financial statement that reports a company’s assets, liabilities and the shareholders’ equity at a specific point in time.
Profit and Loss Statement (P&L)
The profit and loss statement, usually reffered to as a P&L is a financial statement that summarises the income, costs, and expenses incurred during a specific period, usually the financial year.
Someone’s sitting in the shade today because someone planted a tree a long time ago
Warren Buffet
Planning out the future is the best way to ensure success. It may seem awkward and difficult at first, but with practice, you will be able to move your business in the right direction.
Useful Reading:
Isurv Article: https://www.isurv.com/info/390/features/11581/apc_competencies_business_planning_and_accounting_principles_and_procedures
Leave a Reply