A business plan is your vision of your company’s future and cash flows. It should contain the following prognoses:
Impact of the environment on your business – technological, economic, social and political factors /PEST analysis/. Will a new technology appear that may prove a threat to you, will the country’s economy advance or stagnate, will social payments and average salaries rise or fall, etc.? These are all important factors in planning sales.
Planning different items of expenditure – production costs, sales, marketing, etc.
Planning revenue from sales and other activities. Prognosticating the price of your products. The need (or lack thereof) to launch new products and services.
A cash flow chart. Securing funds for your business and predicting potential problems.
A big company needs a long, detailed plan. A small company needs a short and simple one. In either case, a plan is necessary which must above all be workable, useful and achievable.
A plan must be revisited over certain periods of time, with revisions and amendments made to propel the company in the right direction. Whether your sales are better or worse than expected, you must always ask yourself the question, Why? The market and the competition will then hardly manage to surprise you in any way.