Business and financial planning

The business plan is your vision for the future of the company plus financial flows. The main prognosis are in the following:

  • Reflections of the environment on your business – technologic, economic, social, political factors /PEST analysis/. Will there be a new technology which will threaten you? Will the economy of the country develop or will it demise? Will the social-benefits and wages rise or fall ? These are important factors that  help plan the sales.
  • Planning costs for various items – manufacturing, sales, marketing etc.
  • Planning income from sales and other activities. Prognosis of the price of your products. Necessity /or not/ from launching new products and services.
  • The table with the financial flows. Assurance of your business money and prognosis of potential problems.

The big company needs a big and detailed plan.
The small company needs a small and simple plan.
In both cases a plan is needed. Most importantly, it has to be workable, feasible and useful. 
The plan must be reviewed at certain periods of time. You should make corrections and changes to it so that the company keeps going in the right direction.  It does not  matter if sales are better or worse than expected, you should ask yourself one question “Why?” Then the market and your competitors will have no chance to surprise you.

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