Corporate finance - business planning
Like many things in life, planning helps to achieve goals and business is no different. Business planning is a key factor in business success and Hawsons Corporate Finance can help you prepare your business plan.
Planning can benefit three main areas:
- Evaluate the credibility of a new business
- Assist in the daily running of the business
- As a communication tool for ‘selling your idea’
It is one of the most important aspects of starting a new business including management buy-outs and buy-ins. Your plan should provide a thorough examination of the way in which the business will commence and develop. It should describe the business, product or service, market, mode of operation, capital requirement and projected financial results.
Why does a business need a plan?
If you are looking to raise finance for your business it is essential you write a business plan. This will give you to a clear understanding of your business, and crucially, its financial projections. A plan can help determine what finance is required and how where additional funds are needed.
The benefits of writing a business plan extend beyond being a tool to source finance; it is a vital aid to help you manage your business more effectively. There are many advantages for both start-ups and existing businesses.
One of the biggest benefits in writing a business plan is not producing the document itself, but researching the market and critically analysing your business.
What does a business plan include?
Your plan should provide a thorough examination of the way in which the business will commence and develop.
It should describe the business, product or service, market, mode of operation, capital requirements and projected financial results. Always bear in mind that anyone reading the plan will need to understand the essentials of your business quickly and easily.
Get your financials right
- Use up-to-date financial information
- Always substantiate your assumptions
- Ensure you understand the figures
As financial advisers we are particularly well placed to help with this part of the plan. We will ensure that your financial information is both accurate and realistic, and help you to understand the financial projections, ensuring you can answer questions and explain any projections made.
Other dimensions of your business
Before lending money, any potential investor will want a detailed breakdown of your business, the market it operates in and your forecasted profits, cash-flow and balance sheets for the forthcoming 3-5 years. They will also want to look at the day-to-day operations of the business, so it is crucial you consider personnel, marketing and general operating practices when writing a business plan. This will help any potential investor determine the credibility of your business and review whether it has sustainable competitive advantages and competences, which are pivotal to sustaining market share in a competitive market.
The business plan should cover the following areas:
- Financial forecasts
- Financial requirements
Business planning is not a one-off exercise
Putting together a business plan is often seen as a one-off exercise undertaken when a new business is starting up. However, the plan should be updated on a regular basis. It can then be used as a tool against which performance can be monitored and measured as part of the corporate planning process. There is much merit in this as used properly it keeps the business focused on objectives and inspires a discipline to achieve them.
Contact us for a free initial meeting
To find out more about how one of the leading firms of accountants in Sheffield, Doncaster and Northampton can help you, please contact one of our specialists. We believe in long-term client relationships and understand the importance of meeting to establish that you like us and we like you. This is why we offer all new clients a free initial meeting which will enable you to have a discussion about you and your business issues.
We look forward to hearing from you!