Resolutions for Better Business Planning

Here are some suggested resolutions for better business planning applicable to any established business:

Maintain a tight grip on cash flows. For help, see the Checklist for Improving Cash Flow and Cashflow Plan. To get started, circulate the checklist and hold a meeting of key staff to explore the options.

Update (or create) a strategic plan for our business. For help, see Devising Business Strategies, Developing a Strategic Business Plan and the free Online Strategic Planner. To get started, use the online planner to prepare a first-cut plan as the basis for discussion with senior management.

Compile an updated financial plan or budget. Use the free Online Financial Planner and/or Exl-Plan.
Take time out from day-to-day operations to plan at least one new initiative every month to reduce costs or expand the business. To get going, use a Monthly

Planning Calendar.

Marketing Strategies, Sales Plans & Projections

When preparing a business plan (or a marketing & sales plan), two critical sections stand out - Profiles of Target Markets and Marketing Strategies, Sales Plans & Projections. The latter should build on the market assessment (see tip on Sound market analysis is key to a sound Business Plan). In simple terms, marketing and sales plans should cover the 4Ps - Product, Price, Place and Promotion. The following issues need to be considered:

 How will your business market its products/services and sell them to customers? What are the key market entry/development strategies?

 Indicate plans and forecast costs for marketing, selling, promotion, advertising, representation etc.

 How will your products be presented to customers? Discuss packaging, physical distribution, sales support and product support and forecast the related costs.

 Explain pricing policies and credit terms (be realistic!). What discounts will apply and to whom? Will there be bad debts and what provisions should be made?

 What will be the end-user prices? Assess the competitiveness of your business's offerings in terms of price, quality, features etc. at the level of sales outlets or end-users.

 How will you deal with the competitors? How will they respond? What are the contingency plans in the event of sales targets not being fully realized?

Based on these marketing strategies and plans, you can compile detailed sales (volumes and prices) projections for your various segments and products/services. These projections should be monthly (for at least one year ahead especially if the business is seasonal) and either quarterly (much better) or annual thereafter