I spend a lot of my working day visiting clients at their home or place of work. I am very privileged that I get to see so many different people with different outlooks on life, and also I get to see all their business and personal financial affairs.

I often ask, “What’s the plan this year? What are you trying to achieve?” and I get a mixed response, including:

• “We will keep going and see what happens!”
• “Cut my cloth, cut back on some costs”
• “Look for something else we can do along side this”
• “I need to get more organised and stay in control”
• “I want to expand and increase my sales and profitability”
• “I’m not sure, things look bleak…”

A mixture of responses…

The big message I am telling everyone is:

Planning, planning, planning – if you keep doing the same thing and expect a different result then surely that is madness!

You must identify what it is you are trying to achieve, and write it down. Only when we write something do we truly think about it. A financial plan must then be drawn up, as well as a budget, and then a cash flow projection.

What is a business plan?

A business plan is a written document that describes a business, its objectives, its strategies, the market it is in and its financial forecasts. It has many functions, from securing external funding to measuring success within your business.

What is a budget?

A budget is a set of projected figures for sales and costs and is usually based on when sales are made and when costs are incurred. The report should predict the future profitability of the business, showing seasonal or peak/low activity trends. The budget in conjunction with the business plan should identify the viability of the future success of the business.

What is a cash flow?

People often get cash flow and budgets muddled. The cash flow in simple terms is a prediction of the future bank statements of the business. This is a report that is a by-product of the budget and takes account of time delays between when sales invoices are issued and monies received and purchases made and bills paid. Simple dramatic effects can be demonstrated in the cash flow report with scenarios such as the difference between giving customers 40 days credit or 20 days credit, it could mean the difference between going over your overdraft limit or nor being overdrawn at all!

Useful links

The Business Explorer is the brainchild of Ian Thurgood, a chartered accountant who is also an expert in strategic planning and skilled in raising finance for future growth. Having been involved with local businesses for over 30 years Ian now feels the time is right to introduce the concept of the freelance finance director to clients old and new.

Venture Coaching provide full life coaching packages for personal, business or corporate clients. Whether you’re looking for direction in your personal life, to push your business forward or to build your staff into dynamic working team, Venture have the expertise to help you achieve your goals.

What is your plan for this year? What are you trying to achieve?

If you are unsure, or haven’t thought about a plan, or just need some guidance, send me an email to kevin@primeentry.com with your thoughts and questions. At Prime Entry we have a wealth of knowledge within the team which we can use to help you work out what you want to achieve, and then put plans together to help you achieve it.

For more information, contact us.

Kind regards,

Kevin Whitehouse
01747 826989
kevin@primeentry.com